Oriental Insurance Company entered into an agreement with Oriental Bank of ...
Oriental Insurance Company has been asked to compensate Zaveri Bazaar’s jeweller for the burglary which took place in his store Royal Jewellery in 2004.
A few years back Amrit Jawanmal Shah filed a claim with the insurance company stating that his store was burgled of jewellery worth Rs 27 lakhs. The insurance company refused to provide a compensation stating that the theft did not take place. On top of this the insurance company filed a fraud case under section 420 and 511 of the Indian Penal Code against the jeweler.
Shocked by this move, the jeweler approached Maharashtra State Consumer Disputes Redressal Commission on October 16, 2006 alleging the insurance company on account of non-settlement of his insurance claim.
The commission ordered the insurance company to compensate the jeweler with Rs 27 lakh with an additional interest of 6% in November 2007. The insurance company moved the National Consumer Disputes Redressal Commission (NCDRC). NCDRC directed the state forum to decide the complaint afresh allowing the company to file its defense and surveyor’s report, if any, to assess the loss.
The insurance company failed to submit a written version despite specific directions of the National Commission. The state commission said that it had no option but to hold the firm guilty of deficiency in service and adoption of unfair trade practice.
Finally the jeweler was acquitted of all charges and the insurance company was ordered to compensate him with a sum of Rs 27 lakhs with 9% interest plus Rs 25,000 as the cost of complaint.
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