Consumer forum orders insurer to pay full claim amount for shed fire loss in Ballari

The District Consumer Disputes Redressal Commission in Ballari has directed the Divisional Manager of New India Assurance Company Limited to pay the full insured amount to a policyholder whose shed and equipment were gutted in a fire caused by an electrical short circuit.

D. Ramaling Achari, a resident of Araliganur village in Siruguppa taluk, had insured his shed for ₹8,00,000. The insurance policy was valid from May 11, 2023, to May 10, 2024. On May 4, 2024, a short circuit from an overhead high-tension power line caused a fire, damaging about 75% of the shed. Stored materials, machinery, and furniture were destroyed, resulting in an estimated loss of ₹31.25 lakh.

The complainant promptly informed both the insurance company and the bank from which he had taken a loan and filed a claim for compensation. However, the insurer released only ₹60,664 despite the policy’s insured amount being ₹8,00,000. After issuing a legal notice, Ramaling Achari approached the consumer commission seeking the balance amount of ₹7,39,336 along with 9% interest.

Presiding officer N. Tippeswamy and member Marla Shashikala, after hearing both parties, concluded that the fire incident was genuine and caused substantial loss. They noted that the insurance company had failed to conduct a proper site inspection or submit a full damage report. Based on evidence that the goods insured were indeed destroyed, the forum partially upheld the complaint.

The forum directed the insurer to pay ₹1,11,250 as compensation, ₹10,000 towards mental agony, and ₹5,000 as litigation cost, all within 45 days. Failing this, the compensation amount will accrue interest at 6% from the date of the order.