Case Note & Summary
The appellant, National Insurance Company Ltd., challenged the judgment of the National Consumer Disputes Redressal Commission, New Delhi, which allowed the complaint filed by the respondent, Vedic Resorts and Hotels Pvt. Ltd., and directed the appellant to pay Rs. 202.216 lakhs with interest at 9% per annum. The respondent had obtained two insurance policies from the appellant covering its resort property. On 23rd August 2009, a mob of about 200-250 persons entered the resort and damaged the insured property. The incident was reported to the police, and FIRs were registered. Investigation revealed that the mob chased accused persons who had taken shelter in the resort after a firing incident at a nearby football match. The surveyor assessed the loss at Rs. 202.216 lakhs. However, the appellant repudiated the claim, citing breach of policy conditions and non-cooperation by the respondent. The National Commission allowed the complaint without properly considering the appellant's objections. The Supreme Court found that the National Commission had not applied its mind to the appellant's contentions and the surveyor's report, and set aside the order, remanding the matter for fresh consideration.
Headnote
A) Consumer Law - Insurance Claim - Repudiation - Section 23, Consumer Protection Act, 1986 - The appellant-insurance company repudiated the claim on grounds of breach of policy conditions and non-cooperation - The National Commission allowed the complaint without adequately addressing the appellant's objections - Held that the matter requires reconsideration by the National Commission with proper application of mind (Paras 1-10).
Issue of Consideration
Whether the National Commission was justified in allowing the complaint and directing payment of the insurance claim without properly considering the appellant's contentions and the surveyor's report.
Final Decision
The Supreme Court allowed the appeal, set aside the impugned judgment and order of the National Commission, and remanded the matter to the National Commission for fresh consideration in accordance with law.
Law Points
- Consumer Protection Act
- 1986
- Section 23
- Insurance Policy
- Repudiation of Claim
- Surveyor Report
- Non-Application of Mind
- Remand
Case Details
Civil Appeal No. 4979 of 2019
National Insurance Company Ltd.
Vedic Resorts and Hotels Pvt. Ltd.
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Nature of Litigation
Civil appeal under Section 23 of the Consumer Protection Act, 1986 against the order of the National Consumer Disputes Redressal Commission allowing the complaint and directing payment of insurance claim.
Remedy Sought
The appellant-insurance company sought setting aside of the National Commission's order directing payment of Rs. 202.216 lakhs with interest.
Filing Reason
The appellant repudiated the insurance claim on grounds of breach of policy conditions and non-cooperation, but the National Commission allowed the complaint without proper consideration.
Previous Decisions
The National Commission allowed the complaint and directed payment of Rs. 202.216 lakhs with interest at 9% per annum from six months from the date of lodgment of the claim.
Issues
Whether the National Commission was justified in allowing the complaint without properly considering the appellant's contentions and the surveyor's report.
Submissions/Arguments
The appellant argued that the National Commission did not apply its mind to the contentions raised and the surveyor's report.
The respondent supported the National Commission's order.
Ratio Decidendi
The National Commission failed to apply its mind to the appellant's contentions and the surveyor's report, necessitating remand for fresh consideration.
Judgment Excerpts
The aggrieved appellant-Insurance Company has filed the present appeal under Section 23 of the Consumer Protection Act, 1986 challenging the judgment and order dated 07.01.2019 passed by the National Consumer Disputes Redressal Commission, New Delhi.
The appellant-Insurance company repudiated the claim of the respondent-complainant on the ground of breach of policy conditions and non-cooperation.
The National Commission allowed the complaint without properly considering the appellant's contentions and the surveyor's report.
Procedural History
The respondent filed Consumer Complaint No. 227 of 2012 before the National Commission, which was allowed on 07.01.2019. The appellant then filed the present civil appeal before the Supreme Court.
Acts & Sections
- Consumer Protection Act, 1986: 23
