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Kupwara : In a landmark judgment, the District Consumer Disputes Redressal Commission (DCDRC) Kupwara has ordered Bajaj Allianz General Insurance Company Ltd. to pay a total compensation of more than Rs 3.7 lakh, along with interest, to a local bakery owner whose shop was destroyed in a massive fire nearly a decade ago.
The complaint was filed by Abdul Majeed Mir S/O Abdullah Mir R/O Cheki Hatmulla, Kupwara, who had insured his bakery shop with Bajaj Allianz under Policy No. OG-16-1205-4092-00036008. The policy, valid from 27 September 2015 to 26 September 2016, was taken by paying a premium of Rs 2,994. However, tragedy struck on the night of 18 March 2016, when a fire engulfed the shop and reduced its entire stock and equipment to ashes.
Although Mir immediately informed the insurer, the company’s appointed surveyor assessed the loss at only Rs 91,441, which was directly deposited into his J&K Grameen Bank account. Mir contested this amount, arguing that the actual loss was several lakhs as the shop contained sweets, bakery items, disposable utensils, refrigerators, and other goods worth between Rs 7–12 lakhs. Witnesses supported his claim, testifying to the large-scale destruction.
After a prolonged legal battle spanning almost eight years, the Commission, led by President Peerzada Qousar Hussain and Member Nyla Yaseen, ruled in Mir’s favor. The Commission observed that the loss suffered was “substantially higher” than the insurer’s assessment and declared the earlier payment of Rs 91,441 as arbitrary, deficient in service, and not a full and final settlement.
The Commission directed Bajaj Allianz to pay Mir an additional Rs 2,76,520 as compensation for the damaged stock, minus the amount already paid, with 6% simple interest from the date of filing the complaint in 2017 till the date of the order. Furthermore, the insurer was ordered to pay Rs 1,00,000 as compensation for the mental agony and harassment caused by dragging the complainant through years of delay and inadequate settlement.
With these directions, the total compensation due now exceeds Rs 3.7 lakh plus interest, a figure far greater than the initial amount provided by the insurance company. The Commission has directed Bajaj Allianz to comply with the order within four weeks from the date it is served.
This ruling underscores the Commission’s strong stance against unfair practices by insurers and provides relief to a consumer who had been fighting for justice since 05 September 2017.
The compensation amount was later handed over to the complainant through cheques issued by the company.
