District consumer disputes redressal forum-I, Chandigarh, has held United India insurance company of deficient in its services and directed it to pay a compensation of Rs 13,29,794 to the complainant.

According to the complaint, Sameer Gupta, resident of Sector 18 and owner of an industrial unit, had got a burglary insurance policy from the United India Insurance for a sum assured of Rs 60 lakh. The policy was valid from March 31, 2009 to March 30, 2010; and it covered the risk of stock, raw material, semi finished and finished goods and also the machinery and the plant.

"On March 23, 2010, a major theft was held at the factory of Sameer in Industrial Area, Phase-I in Chandigarh. A police case was registered and after evaluation it was found that the stock of zinc raw material, worth Rs 13-14 lakh was stolen," said the complainant's lawyer.

He added, "We had submitted untraced report with the insurance company. The insurance company was also informed about the exact details of the loss. Besides, we submitted all the requisite documents to the surveyor, who assured expeditious settlement of the claim but the company started delaying the matter." They later repudiated the claim on various frivolous grounds and therefore we approached the forum.

During the arguments, the insurance company's lawyer stated that the investigation has revealed that there was no use of force for entering the factory premises and the door was opened by one of the employee. There was a condition of the policy that the claim is only payable, when there is an application of force for entering the premises with a purpose of theft. However, after listening to the arguments, the forum held the insurance company guilty of being deficient in services and directed it to pay a compensation of Rs 13,29,794 to the complainant.

Source - timesofindia.com

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