Theft claim denied due to possible employee involvement

In Sikar, Ajmer VidyutVitram Nigam operated a number of outlets. The products housed in the stores were covered by two policies provided on a floater basis by United India Insurance Company: one for standard fire and special perils and the other for burglary.

A theft occurred at the Sikar Store Campus in Sabalpura Power Station House on October 3, 2011, late at night. A total of six drums holding wires were taken. An FIR was filed with the Kotwali Police Station by the Assistant Store Controller. The fact that the theft happened by forcing entry through the circular office's main gate was also disclosed to the insurance.

The assigned surveyor determined that the loss amounted to Rs 6,33,948. On March 30, 2012, the insurance did, however, notify that the claim had been rejected.

The Nigam (Corporation) filed a consumer complaint with the Sikar District Forum, contesting the repudiation. The case was disputed by the insurance. The Forum granted the complaint and instructed the insurer to pay the assessed sum of Rs. 6,33,948 in order to satisfy the claim. Additionally, Rs. 10,000 was granted for legal fees.

United India filed an appeal challenging the ruling. The weight of each wire drum, according to the Rajasthan State Commission, was around 1,000 kilogrammes (kg), meaning that the six stolen drums totaled 6,000 kg. It was noted that pulling off such a theft would be difficult and would need the cooperation of multiple individuals in order to roll out the barrels and put them onto a vehicle with a crane's help. The Commission noted that no vehicle markings or other indications of theft were found during the investigation carried out at the scene of the occurrence.