Oriental Insurance Company Ltd to pay Rs 45 K in burglary case

Oriental Insurance Company Ltd has been asked by the Delhi State Consumer Commission to pay Rs 45,000 to a business firm, which was insured with it, for the loss suffered in a burglary.
New Delhi State Consumer Disputes Redressal Commission, comprising its judicial member S A Siddiqui, asked the insurance company to pay the amount, which also included Rs 15,000 compensation, to city-based Brisk Infotec Solutions, while dismissing the review petition filed against a district consumer forum's order.
The insurance company had moved the state commission challenging the forum's order directing it to pay the money for loss due to burglary in the firm's office.

The insurance company had earlier denied the claim while raising objections over the burglary.
While upholding the forum's order, the commission said, "This (the incident) is a clear-cut case of forcible entry in premises which is termed as burglary. Loss due to burglary is an insured peril under the subject policy and not under any exclusions, hence underwriters are liable to indemnify insured as per terms and conditions of the insurance policy."
The commission also noted that the drawer of the office was found broken and, thereafter, cash was stolen. It added that the forum's order did not suffer from any illegality or irregularity and deserved to be maintained.

The firm had earlier told the forum that it had taken a policy from the insurance company in May 2008 which covered the risk of theft of cash as well as goods and machinery among other perils.

In March 2009, a burglary took place in its office when some person trespassed and broke open the doors and Rs 1.23 lakh cash was stolen. Thereafter, the firm lodged a claim with the insurance company which was repudiated it.
The firm filed a complaint with the forum for deficiency of service on part of the insurance company.
The insurance company, however, submitted that the claim was rejected on the ground that under the terms and conditions of the policy, only loss of cash out of business hours was covered that too secured in a locked safe or locked strong room in the insurer's premises.

The district forum, however, had directed the insurance company to pay Rs 45,000 to the firm. Aggrieved by this, the insurance company filed appeal before the state commission.