The complainant, Subhash Gupta, said that he took a household insurance policy from Oriental Insurance Company in 2005 covering all risks to household articles in his New Delhi residence.

Gupta said his house was looted when he was away with his family in Punjab and insured articles worth Rs 9.2 lakh were allegedly stolen. It was said that though a surveyor was appointed, the claim was repudiated by the company.

In its reply, Oriental Insurance Company said the claim had not been settled as the requisite documents and information were not furnished by the complainant. It was stated that the investigator returned a finding that the policy holder was not cooperating.

The forum maintained that there was no negligence on part of the complainant in leaving the keys of the locker in an unlocked briefcase. They ruled that the complainant had fully cooperated with the company and repudiation of the claim in the face of the surveyor’s report was a deficiency in service. The forum also directed the insurance company to pay Rs 5 lakh and Rs 2.5 lakh as compensation for causing unnecessary delay in finalising the claim and causing the complainant mental and physical harassment. The company then appealed against the order of the forum to reduce the amount of compensation as the insurance amount of Rs 5 lakh had already been paid.

Meanwhile, the complainant also filed an appeal stating that he is yet to recover the loss of Rs 87,240 as the limit of the claim of Rs 5 lakh only applies to the loss of jewellery.

While partially accepting the plea of both parties, the Commission held that the total claim was Rs 5, 87,240, as per the surveyor’s report.

The Commission said that the company will have to pay interest at the rate of 12 per cent per annum for a period of three years instead of Rs 2.5 lakh as compensation.