MUMBAI: The National Consumer Disputes Redressal Commission dismissed a revision petition filed by medical stores company against an order of state commission directing the insurance company to pay only Rs one lakh compensation.
The complainant was running a medicine store which was taken on rent by another person. The complainant obtained "Shopkeepers Insurance Policy" from the insurance company for a sum of Rs 5.10 lakh for a period commencing from March 2006 to March 2007. The shop was demolished by the Municipal Corporation, in June 2006 with the help of bull dozer and JCB without any prior notice to the complainant on the ground of unauthorized occupation of the premises.
In spite of injunction from the court, the entire shop along with goods and furniture and fixture was destroyed. The complainant alleged that due to malicious act on the part of Municipal Corporation, he sustained loss of Rs 4.85 lakh. The complainant filed claim before the company which was repudiated.
Alleging deficiency on the part of OP (opposite party), the complainant filed complaint before District Forum. The OP contested the complaint and submitted that complaint was beyond the scope of policy as loss was caused due to action initiated by the public authority and submitted that claim was rightly repudiated and prayed for dismissal of complaint. The District Forum, allowed the complaint and directed the OP to pay a sum of Rs 4.85 lakh along with compensation of Rs 5,000. An appeal filed by the OP was partly allowed by the State Commission which reduced the amount of compensation from to Rs one lakh against which, the revision petition has been filed.
The commission, however, said that there was no illegality, irregularity or jurisdictional error in the order and the revision petition is liable to be dismissed.
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