Insurance Claim must be paid after deducting depreciation

GUWAHATI OMBUDSMAN CENTRE
Complaint No. 11-G8-020/13-14
Mr. Amar P. Saxena
– Vs –
The Reliance General Insurance Co. Ltd

Insurance Ombudsman Date of award: 06.01.2014

Complainant: The Complainant stated that he procured House Holder’s Package Policy No. 1505322613000041 from the National Insurance Co. Ltd. covering the period from 25.01.2012 to 24.01.2013. While the policy was in force, on 15.01.2013 there was electrical short-circuit due to which a number of electrical equipments belonging to him were damaged. He immediately informed the Insurer about the loss. The Insurer deputed their Surveyor to assess the loss. Thereafter, he lodged a claim for Rs.27,700/- before the Insurer along with all supporting documents. But, the Insurer has offered Rs.10,259.00 which he refused to accept the same. Being aggrieved, the Complainant has filed this complaint.

Insurer : The Insurer has stated in their “Self Contained Note” that they deputed their Surveyor to assessed the loss and he submitted his report assessing the loss at Rs.10,259/-. The Complainant queried the basis of assessment of the surveyor. They have satisfactorily answered through a letter dated 22.04.2013. Accordingly, they offered Rs.10,259/- to the Complainant which he refused to accept.

Decision : I have carefully gone through the entire documents available on record including the statement of the parties. The Survey Report has been produced by the Insurer, wherefrom it is noticed that the Surveyor inspected the site on 18.01.2013. It is mentioned in the Assessment Sheet of the Survey Report that in case of Oven, the Surveyor assessed the loss at Rs.1825.00 after deducting the Salvages L/S. As regard Microwave Oven, the Surveyor assessed the loss at Rs.2875.00 after deducting Depreciation 50% and Salvages L/S. In case of UPS (AVO), the Surveyor assessed the loss at Rs.1900/- after deducting Salvages L/S. In connection with Desktop (Excluding Monitor), the Surveyor assessed the loss at Rs.4650/- after deducting the Salvages L/S for CPU. In case of Monitor, the Surveyor assessed the loss at Rs.1235.00 after deducting 25% Depreciation. Finally, he assessed the loss at Rs.9,985.00 after deducting Policy Excess 5% claim amount subject to mini. 2500/-. It is also mentioned in the Survey Report that (1) Assessment has been dame considering present new replacement cost and deducted betterment. (2) Depreciated has been made considering normal wear & tear, uses, ageing and limited life etc. (3) Salvages has been assessed at nominal lumpsum rate prevailing on local market. Further, the Surveyor has mentioned that the computer system and oven usha were found of old one and these were of obsolete type equipments and so assessed those as per terms of the policy. The Insurer has also settled the claim at Rs.10,259.00 on the basis of the Survey Report and I find no irregularity on the settlement of the claim by the Insurer. Accordingly, the Insurer was directed to pay Rs.10,259.00 to the Complainant within 15 days from the date of receipt of the Award.