Surveyor Report Not Definitive & Can Be Challenged With Credible Evidence: NCDRC

Panchajanyam Hospitalities Vs Branch Manager, United India Insurance Co. Ltd. (NCDRC Delhi)

Summary: The National Consumer Disputes Redressal Commission (NCDRC), Delhi, has upheld a ruling dismissing an insurance claim, emphasizing that while a surveyor’s report is not definitive, it can only be challenged with credible evidence. The case involved Panchajanyam Hospitalities, which operates a hotel that sustained significant damage from a storm. The hotel, insured by United India Insurance Co. Ltd., filed a claim for Rs. 25,00,000. However, the insurance company’s surveyor assessed the net liability at a significantly lower amount, leading to a settlement offer of Rs. 2,55,608. Dissatisfied with this offer, the hotel filed a complaint with the State Commission, which was subsequently dismissed. The hotel then appealed the decision to the NCDRC. During the NCDRC proceedings, the hotel’s counsel argued that the surveyor had admitted to the damages and that the dispute was merely over the quantification of the loss. The insurance company maintained that the surveyor’s report was comprehensive, based on approved rates, and that the hotel’s claim was exaggerated and unsubstantiated. The NCDRC noted that the hotel was unable to produce any documentary evidence to support its claim of a higher loss, even after being granted time to do so. This lack of evidence was a deciding factor.