Pay claim, interest, cost; J

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Srinagar, Jul 18 (UNI) Jammu and Kashmir State Consumer Disputes Redressal Commission (SCDRC), rejecting the appeal of the Oriental Insurance Company (OIC), has directed it to pay the claim along with interest and costs to a person who had suffered losses.

The SCDRC, Srinagar, headed by Justice G D Sharma and Mrs Rifat Aijaz, member, dismissed the appeal of the OIC which had alleged that Ghulam Nabi Kana had filed a false claim against the losses suffered by him.

The commission directed the OIC to pay Rs 4000 costs along with the actual claim of Rs 4,27,821 with interest at the rate of 6 per cent PA from the date of institution of the complaint before the Divisional Consumer Protection Forum, Kashmir.

Besides, the commission directed the insurance company to pay Rs 2000 to Mr Kana as litigation charges as awarded by the forum.

The plea raised by the Company that the claim was false one has found no favour with the Commission, the order said.

In another appeal, filed by another insurance company on May 11, 2007, the SCDRC dismissed it, with costs of Rs 4000 and allowed the claim of the respondent, Daud Ali.

The respondent had insured his carbon copier with the National Insurance Company and during the period of insurance cover, the machine it had developed defects beyond repairs.

The Divisional Forum Kashmir had allowed him an amount of Rs 29,400 by way of indemnification of the actual loss caused to him, along with interest at the rate of six per cent PA and a compensation of Rs 10000 for financial loss and mental agony.

Litigation charges were also awarded to the extent of Rs 2000.

The Commission after upholding finding of the Divisional Forum has further burdened the insurance company with costs of Rs 4000 and ordered immediate payment of the whole claim.


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