THIRUVANANTHAPURAM: The State Consumer Disputes Redressal Commission (SCDRC) has ruled that damage due to heavy rain can be considered as a peril falling under the ‘flood and inundation’ clause in an insurance policy.
An SCDRC bench comprising president Justice B Sudheendra Kumar, judicial member Ajith Kumar D and member K R Radhakrishnan made the ruling citing Supreme Court orders, while considering the appeal plea filed by a Palakkad native against the district commission’s denial of compensation. The bench directed the firm, United India Insurance Co Ltd, to pay Rs 32,500 as losses and Rs 5,000 as costs.
The complainant had availed a Standard Fire and Special Perils policy from the firm after paying a one-time premium of Rs 5,898.90. It covered the residential building, compound wall and well belonging to him. During the term of the policy, the compound wall collapsed in heavy rain.
A surveyor assigned by the firm assessed the loss at Rs 32,500. However, the company rejected the claim saying rain or heavy rain was not a peril covered under the policy.
It said coverage is for destruction or damage directly caused by storm, cyclone, typhoon, hurricane, tempest, tornado, flood or inundation excluding those from earthquake, volcanic eruption or other convulsions of nature. The district commission had upheld the company’s argument.