Claims for Loss to Property - Genuine or Fraudulent

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Claims for Loss to Property - Genuine or Fraudulent

Dinesh Mishra was the owner of an apparel showroom situated in a commercial area of Navi Mumbai. The showroom stocked clothes for wealthy, trendy young people. It carried a variety of designs and premier collections designed by famous designers, including Ritu Beri. On weekdays Mishra would stay in the apparel showroom upto 1:00 am as people in the city preferred to do late evening shopping. Thus, he could not spend sufficient time with his family during weekdays. Every weekend Mishra spent time with his family. One evening, he was enjoying his weekend with his family in a restaurant situated outside the town on a small hillock. While Mishra and his family were enjoying a mid-night buffet at the restaurant, his cell phone started ringing. Ratan, the security guard of the apparel showroom, was on the line. In a panic-stricken voice, Ratan informed Mishra that there was a major fire in the showroom and that the showroom was completely destroyed in the fire.

On hearing the news, Mishra was shell-shocked and couldn't speak a word. After regaining his composure, he rushed to the spot and tried to get first hand information about the fire accident. He asked the security guard how the accident had taken place. He then informed UB Insurance Corporation of the incident. UB insurance was the primary insurer for the property.

UB insurance sent a claims adjuster, Venu, to meet Mishra and analyze the damage caused to the property. Venu had considerable experience as a claims adjuster. He had been associated with UB Insurance Corporation for nearly five years. Prior to this, he had worked for Delhi Insurance Corporation for nearly four years. Venu rushed to the site of the accident as soon as he received orders from his superior to conduct a spot analysis of the property in question.

At the site, Venu met Mishra and assessed the situation. He asked Mishra about the daily turnover of business in his showroom. Mishra informed Venu that the business was moving quite smoothly. Later, Venu asked Mishra for the books of accounts related to the business. Fortunately, the books of accounts were not damaged in the fire. The books revealed that in recent times, there was a reduction in sales. When Venu asked Mishra the reason for the decrease in sales, Mishra replied that it was because of low demand during the off-season period. Venu later made enquiries with other apparel shops in the area and was told that competition was quite intense in the region, and that demand had been low for the past two months.

After obtaining all the necessary information pertaining to the business, Venu again came back to Mishra and asked the probable reasons for a fire occurring on a Sunday and not a weekday, and that too, at such a late hour.

Since the showroom was closed at the time of the accident and all lights and other electricity related equipment had been switched off, Venu felt that there should have been less chance of a fire accident occurring during the weekend.

Mishra asked Venu to consult the fire fighters who would perhaps be able to throw some light on the possible reasons for the cause of the accident. When Venu asked the fire fighters involved in putting out the fire, they informed him that the fire might have been caused by a short circuit.

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