Insurance co draws flak for appointing several surveyors

Insurance co draws flak for appointing several surveyors


New Delhi: The tendency of insurance firms to appoint several surveyors for assessing the damage in a claim case has drawn flak from a consumer court which has directed the National Insurance Company to pay Rs13 lakh to a company which suffered loss in a fire in 1999.

The Delhi Consumer Commission said a surveyor should not be changed in an insurance claim case until there are malafide and extraneous considerations in his/her report.

The court gave vent to its feeling after the second surveyor scaled down the estimate loss of the claimant company to Rs5.8 lakh from the original Rs13 lakh estimated by the first surveyor.

“We deprecate the practise of appointing surveyor after surveyor. This tendency has to be curbed," the Commission said.

Complainant Ashok Jain, Managing Director of the Select Flavours India Limited, New Delhi, had approached the Commission with a claim of Rs16 lakh when the insurance company scaled down the insurance claim for its damages to Rs5.8 lakh on the basis of the report prepared by the second surveyor.

The Court suggested that recommendations of the first surveyor’s report should ordinarily be honoured.

“Until the report suffers from an element of bias, malafide or extraneous consideration or non-appreciation of the documents produced by the complaint, the insurance company should not appoint second surveyor," Commission’s President Justice J D Kapoor said.

Objecting to the insurance company’s dilly-dallying in settling the claims of the insured, the Commission said such acts amount to deficiency in service. (More) PTI WDA RB RAH