Can
insurance company appoint surveyors one after another
(IRDA Rules)
Case in hands is
M.K.U. Private Ltd.Vs United India Insurance Company Limited Judgment
Date:21-02-2019 National Commission
Main issue –Can insurance company
appoint surveyors one after another.
Defending insurance company raise two technical
points to derail the entire matter
1. Insured
is not a consumer
Case of Harsolia
Motors vs. National Insurance Co. Ltd., I (2005) CPJ 27
resolved this
issue long back that Complainant is not getting benefitted or
earning any profit from
the Insurance policy,its indemnification of loss
2.
Matter
in a complicated question of law and hence consumer court cann’t deal with the
same under summery procedure.The issue was resolved by Hon’ble Supreme Court in the case of “ CCI
Chambers Cooperation Housing Society .
stating and relying Section 13(4) of the Act confers the same power of
investigation on the consumer courts as are enjoyed and exercised by the Civil
Court.
Main issue of
appointing another surveyor ;Rule &law
Complainants point
of objection ;
·
Had
purchased an insurance coverage vide policy No.000001/11/3/00355 (Fire Floater
Policy) valid for the period 24.08.2003 to 23.08.2004 securing the stocks lying
at 4, Gandhi Gram, G.T.Road, Kanpur for the sum of Rs.3 Crores.
·
A
fire broke out at 4, Gandhi Gram, G.T.Road, Kanpur on 02.06.2004. It caused
substantial loss and damage to the insured property
·
The
intimation of the fire including the statement of loss suffered was sent to the
Insurance
Company, Opposite Party No.1 on 03.06.2004.
·
M/s
S. K. Ahuja & Associates as authorised surveyor for assessing the loss and
damages suffered by the Complainant. The Surveyor took the services of M/s
R.
Singh and Associates, Chartered Accountant for verifying the data. The
Chartered Accountant submitted his report on 23.03.2005. The Surveyor also
submitted his report on the same day.
·
Opposite
Party No.1 appointed the second Surveyor/Investigator, namely,Lt. Col. D. P.
Jairath for investigating the claim.
Objection-
1.
No
clarification was sought from the legally appointed first surveyor about his
report and unjustifiably appointed second surveyor It was illegal
&unjustifiable to appoint another surveyor without any reason
2.
that
there is substantial unjustified delay in finalising the claim and the
Complainant had to seek directions from the Hon’ble High Court of Allahabad by
filing the Writ Petition
3.
further
argued that in terms of Section 64 UM (3) of the Insurance Act 1938, the power
to appoint a second surveyor lies with IRDA and not with the insurer, i.e., the
Opposite Party No.1.
Law laid down so far on this
issue
Sikka Papers Limited V National Insurance
Company Ltd.111(2009)CPJ 90 SC
·
Condemned
the practice of some insurance companies in appointing one surveyor after
another without recording reasons for the same and at the back of insured
without his knowledge,
· Has been agreed that surveyor's report is not the last word but then there must be legitimate reasons for departing from such report. Hence in spite of the fact two surveyors were appointed, both were appointed with the consent and to the knowledge of parties, the report so prepared was considered as per the terms and deduction made from the claim amount was found justified.
Dixit
Oil Industries
Four surveyors one after another not justified
Sri Venkateswara
and Syndicate Vs. Oriental Insurance
Company Limited & Anr. (2009) 8 SCC 507”
Explained in the judgment scope
of Section 64 UM of the Insurance Act
·
Second
surveyor can be appointed only when the first surveyor’s report is either
inherent defects in it or that it is arbitrary, excessive, exaggerated etc.
·
While
appointing a second surveyor the insurer has to give cogent reasons for
rejecting the report of first surveyor
“New India
Assurance Company Limited vs. and Balbir Singh, First Appeal No.628 of 2018
Sona Ceramic vs.
New india Assurance Co. Ltd., Consumer Complaint No.399 of 2002 and has clearly
held that the Insurance Company has to give decided on 01.05.2015
IRDA (Protection
of Policy Holders’ Interest Regulations 2002)
·
The
Opposite insurance company , on receipt of the legally appointed surveyor’s report,
if found the report incomplete, was required to intimate the same to the
legally appointed surveyor within 15 days with request to furnish additional
report on the basic issues
·
If
he fails to do so,then there can be question of second servayor
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