Two decades after a couple’s stock of coal was reduced to ashes in a fire incident in 2003, the State Consumer Disputes Redressal Commission of Chandigarh has asked an insurance company to pay Rs 1.36 crore to a city-based couple. The commission also directed the insurance company to pay a compensation of Rs 2 lakh and Rs 35,000 as cost of litigation each to husband and wife for causing mental agony and harassment by rejecting their claim without any valid reason. The commission remarked, “This is a typical case where consumer/complainant is suffering for more than two decades and she being the sole proprietor has been unnecessarily put to mental agony and harassment. Due to abovesaid incident of fire, the complainant lost the entire wealth and her business has totally been ruined. However, salt has been added to her miseries by the opposite parties by putting her into this prolonged litigation.” “One can very well imagine the plight of the complainant in such a situation. It is settled law that the Consumer Commission should award adequate compensation to compensate the consumers for the harassment, agony and loss faced by him/her," added the commission. Prem Vashisht and her husband, V K Vashisht, had approached the Chandigarh Consumer Commission in 2003, which dismissed their plea in 2004. They then approached the National Consumer Disputes Redressal Commission, New Delhi, filing the appeal, where again the order of Chandigarh Consumer Commission was upheld, in 2004 itself. The couple then not getting any benefit from the National Commission, approached the Supreme Court in 2007, filing an appeal against the National Commission order. The apex court in 2023, while setting aside the orders of the Chandigarh Consumer Commission and of National Commission, restored the complaints to the Chandigarh Commission for consideration of the matters on merits and in accordance with law. As per the case, the complainant, Prem Vashisht, was running the business of selling coal in which she was self-employed and was carrying her livelihood for the last 25 years. In order to arrange sufficient financial resources for running the business of buying and selling coal, she approached the Punjab National Bank (PNB), which offered to finance the complainant to the extent of 75 per cent of the total working capital/cash credit limit and in order to protect its own interest, PNB had taken a fire policy from the New India Assurance Company Limited (Assurance Company) from time to time. The policy was valid from November 1, 2002 to October 31, 2003 for a total sum of insurance being Rs 1 crore of the stores and stocks relating to the business of the complainant were to remain comprehensively insured against all risks at full value. As per the complainant, a fire broke out on the premises/godown of the complainant on February 7, 2003 in which the entire stock of the godown was turned to ashes, and intimation of the same was sent to the insurance company as well as PNB. The insurance company then immediately deputed a surveyor. The claim of the complainant was, however, not settled till July 2003. The PNB issued a letter, dated July 10, 2003, to the assurance company for settlement of the claim of the complainant. However, the assurance company did not settle the claim and it vide its repudiation, dated August 20, 2003, informing the complainant that her claim was not payable as the loss had occurred due to spontaneous combustion, which was not covered under the fire policy issued to PNB to cover the risk to the stock/coal of the complainant. The PNB in reply supported the contention of the complainant that the rejection of the claim by the assurance company was on irrelevant grounds and was not valid and proper. Allegations of deficiency in service or negligence on the part of PNB, were, however, denied.
