Criminal acquittal no ground to deny insurance payout

Sushila Devi was the proprietress of a clothing store named Durga Cloth Store, situated on the highway in Orai, Jalaun District, Uttar Pradesh.

- JEHANGIR B GAI

The shop was insured with Oriental Insurance for ₹12 lakh under a policy valid from February 12, 1996, to February 11, 1997. The policy also included additional coverage of ₹4 lakh to protect against the risk of cloth being stolen or destroyed by fire.

A theft occurred on the night between July 29 and 30, 1996. The locks were broken open, and clothes and sarees valued at ₹1,49,571 were stolen. The incident was immediately reported to Kotwali Police Station in Orai, where an FIR was registered. A claim was also lodged with the insurer seeking reimbursement for the loss caused by the theft.

The insurer appointed M. R Agarwal as surveyor, but he failed to complete the assessment of the loss. Subsequently, K. S. Arora was appointed to conduct the survey. According to the survey report, cloth and sarees worth ₹1,37,167 had been lost due to the theft.