Hyderabad: G. Srinivas, a 35-year-old resident of Medak, was awarded a whopping Rs 10 lakh from the district consumer redressal forum, Hyderabad. He had filed a case against the Rajasthan-based Shriram General Insurance Company and its branch, located in Himayatnagar. The complainant had purchased a third-hand Hitachi excavator and insured it with Shriram Insurance for one year from May 2015 to 2016 for Rs 10 lakh with a premium of Rs 14,154. The complainant claimed that while he was working with the excavator at the Rustumopet lake in Narsapur mandal to dig out mud from the lake, the vehicle caught fire due to a short circuit.
The vehicle was damaged completely and needed Rs 9 lakh to repair it. However, despite repeated applications, the insurance company denied them on flimsy grounds. The insurance company argued that there was a breach of warranty by the complainant. It was found during the inspection that it was a short circuit near the battery box that led to the fire. The complainant did not engage any skilled operator who could have taken care of the vehicle and that the vehicle was imported from a Japanese company. The company also stated that many parts claimed to be damaged in the vehicle were actually not destroyed.
The forum observed, “The insurance company was well aware at the time of issuing the policy that the machine is a Hitachi-make. Therefore, issuing a policy and accepting the premium, if the condition stipulated is that the machine should be of indigenous-make, is itself illegal.” The complaint won the case partly as the opposite parties — the head office and the branch in Hyderabad — were held jointly liable for deficiency in service. They have been instructed to pay the complainant Rs 9 lakh under the contractor plant and machinery policy and Rs 1 lakh as compensation.
