Posted On Wednesday, February 04, 2009 at 05:08:53 PM
Burglary insurance claim rejected for security lapse
Mayank Soni -SV Road
If you do not take adequate security measures for the safety of your shop, the insurance firm will not be liable to honour the burglary claim.
Recently, the State Consumer Disputes Redressal Commission dismissed VR Jewellers’ complaint against The Oriental Insurance Company Limited, as he had not taken proper precautions to prevent burglary, violating the insurance policy rules.
Partners of the showroom had taken an insurance policy against burglary for their shop from Oriental Insurance valid from January 30, 1996 to January 29, 1997. In October 1996, unidentified thieves entered the shop, breaking open the iron grill window and escaped with jewellery worth Rs 13 lakhs.
On inspection, the insurance company’s surveyor found the thieves stole the jewellery from the cupboard with original keys, which the owners kept in the cash counter. Further, the surveyor pointed out that the window was such that anyone could enter the shop easily, making the shop susceptible to thefts at night.
AS Vidyarthi, defence advocate argued that the insurance proposal form clearly mentions that ornaments should be stored in a standard safe, otherwise the policy cover would not operate. At the time of burglary, owners had kept the ornaments in a locally-made almirah that was not theft-resistant.
Judicial Member of the State Consumer Disputes Redressal Commission observed PN Kashalkar, “If ornaments worth about Rs 14 lakhs were kept in the shop, it was the duty of the complainant to engage services of watchman at least at night. A common watchman on the road available for the locality would not be sufficient as good security measures on the part of the complainant.”
However, partner Manilal Bheda’s contention was that they had shown the cupboard to the company’s representative before the policy was issued, and they had not taken any objections. He says, “What is the use of taking a policy if we do not get a claim? I will have to consult my lawyer about going in appeal.”
mayank.soni@timesgroup.com
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