Surveyor cannot apply deductions arbitrarily

The National Commission held the insurer liable to settle the claim in accordance with the original computation of loss jointly signed by the surveyor and insured

Biswajit Guha, proprietor of Vida Engineering Company, was awarded a contract for constructing a road in South Tripura. To insure this work, he took a Contractor’s All Risk Insurance Policy from New India Assurance. He was char­ged Rs 3,48,316 as premium. He had to subsequently pay further amounts of Rs 1,03,987 and Rs 1,13,076 as additional premia.

In mid-July 2008, there was heavy rainfall at the construction site which led to flash floods, causing damage to the project work. Guha informed the insurer, which deputed S.R. Das as surveyor. Das visited the site and assessed the loss at Rs 60,15,232.