Doubt in Surveyor’s Report Leading to Non-Assessment by Insurance Company constitute Service Deficiency

Mankind Pharma PVT. LTD. Vs New India Assurance Co. Ltd. (NCDRC Delhi)

Conclusion: In present facts of the case, the National Commission observed that where the Final Surveyor’s Report credibility becomes doubtful and at the same time no assessment have been made by the Insurance Company casts a severe shadow on their inaction indicating towards a deficiency in service on the part of the Insurance Company as well.

Facts: In present facts of the case, the Complainant is a Pharmaceutical Public Limited Company engaged in the business of manufacturing and trading pharmaceutical products of different descriptions. The complaint arises out of a denial of the liability by the Insurance Company in respect of the loss suffered and claim raised by the Complainant which has not been formally repudiated.

The brief facts were that a truck carrying a consignment of medicines that was dispatched on 10.9.2005 while on its way from the Meerut godown of the Complainant to its godown at Hisar and Jaipur met with an accident near Hansi due to incessant rain. The road had become slippery and while negotiating a curve, the vehicle carrying the consignment skid from road and fell into the adjoining canal. Resultantly, the consignment was drenched in water and substantial part of the vehicle was submerged that caused complete damage to the consignment. The Complainant intimated the said accident to the Insurance Company. The goods were assured under a total coverage of Rs. 75.00 lakhs with a limit per transit of Rs. 50.00 lakhs.

The Insurance Company appointed many Surveyor and Investigators. The Investigation pertaining to the accident have continued till 2.5 years.  The Complainant issued a Legal Notice to the Insurance Company questioning the very appointment of the Investigator and the credibility of their Report, and also complaining that no decision has been taken by the Insurance Company to finalize the claim.

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