LAW FOR ALL

Fire accident = When there is no clause not to make any constructions to the building with out permission - No claim should be rejected when fire accident was occurred due to short - circute - not concerned with building works = the petitioner issued an insurance policy number 201002/11/03/00372 called ‘Standard Fire and Special Perils Policy’ in favour of the complainant / respondent for a sum of Rs.20.50 lacs for the period 17.3.2004 to 16.03.2005. Out of this amount of Rs.20.50 lacs, Rs.20 lacs was meant for stocks of all kinds of sofa material, curtains cloth, mattresses, pillows, cushions, towels, bed sheets, etc., and Rs.50,000/- was the coverage for furniture, fixtures, fittings and electrical items. During the currency of the policy, fire occurred on 19.09.2004 at about 3:30 a.m. and the respondent estimated the loss to be Rs.20,68,090/-. An intimation was given by the respondent to the local police on the date of the fire and the insurance company was also intimated. The petitioner insurance company appointed a surveyor to assess the loss. Vide his report dated 29.01.2005, the surveyor assessed the loss at Rs.10,80,770/-. The surveyor also pointed out that at the time of loss, there was construction going on in the shop on the first and second floors of the building. In order to supply electric current to first and second floor, electric wires had been put on the main electric meter for the shop, which resulted in probable short-circuiting, leading to fire. The petitioner repudiated the claim, saying that there was violation of conditions of the policy, because construction was going on in the premises. = construction activity was being carried out at the premises in question and as per the surveyor’s report, the probable cause of fire could be due to short-circuiting, but we agree with the findings of the District Forum and State Commission that in this case also, the insurance company cannot escape responsibility to pay the claim under the Policy. We do not agree with the contention of the petitioner that the construction activity had resulted in increased risk for the insured stocks in question. It has also been made clear that there are separate electric connections for the ground floor and first floor and there are separate electricity meters for the same. It is not clear anywhere that the insured was required to obtain permission of the insurance company before starting the construction. The District Forum in their order have rightly assessed the value of the total stocks, in question and the value of the stocks lying safe in the godown, and allowed the claim after taking into consideration both these values. We, therefore, find no illegality or irregularity in the orders passed by the District Forum and State Commission which reflect true appreciation of the facts and circumstances on record. These orders are, therefore, upheld and the present revision petition stands dismissed with no order as to costs.