SBI told to pay insurance claim to mill owner

Visakhapatnam: The District Consumer Disputes Redressal Forum, Vizianagaram, presided by T Srirama Murthy, asked the SBI General Insurance Company Limited to pay the insurance claim of Rs 9 lakh and other expenses to M Seetha Mahalakshmi, whose rice mill was gutted in a fire and lost goods worth Rs 10 lakh.

The complainant Seetha Mahalakshmi was running a rice mill in the name Sri Durga Seetharama Modern Rice Mill after obtaining permission from the departments concerned.

The SBI insurance officials approached her to take which covers the risk and damage to the property in the mill in case of any fire or any untoward incident. She paid necessary premium amount and insurance company issued a policy which was in force as on the date of incident.

November 11, 2015, at about 11.30 pm a sudden fire was broke out on the mill premises and Mahalakshmi informed fire authorities of S Kota who rushed to the spot and extinguished the fire. The fire officers made a note of the property damage on the mill precincts. A report was also submitted to the police as well as to the SBI insurance officials about fire accident for taking necessary action.

She claimed destruction of 263 quintals of rice, 203 quintals of paddy and 315 gunny bags. The insurance company appointed their licensed surveyor K Krishna Murty to inspect the premises and assess the damages. The surveyor raised objections following which the complainant provided all the documents.

But the SBI refused to settle the claim stating the evidence found that hydrocarbons were present in the ashes and the fire was caused deliberately for gain.

The S Kota police where a complaint was registered sent sample to FSL, Hyderabad, and received a report in which it said there was no trace of hydrocarbons.

Based on the report, the forum asked the SBI insurance company to pay Rs 9 lakh and other expenses within two months from the date of decree. The forum passed the order on June 16 this year.