Vadodara Consumer Forum Dismisses Insurance Claim, Rules Cupboard Not a Safe for Valuables
In a significant ruling, the Vadodara Consumer Disputes Redressal Commission has declared that a cupboard is neither equivalent to nor an alternative to a strong room, and a wooden cupboard is not considered a safe place to keep valuables. This decision came while dismissing the complaint of a businessman whose house was burgled, leading to a dispute over an insurance claim.
Background of the Case
Transport businessman Harsh Lathiya, a partner in Gemini Carrier, filed a complaint against New India Assurance Company Ltd before the Vadodara Consumer Disputes Redressal Commission in January 2020. The complainant stated that he required cash daily to run his business and meet routine expenses. To cover this need, he purchased an insurance policy with special conditions to protect business cash of up to Rs 5 lakh kept at the owner's or partner's residence.
Incident of Burglary
In May 2018, Nirav Lathiya, a partner in the firm, was having furniture work done at his home. The carpenter allegedly left midway on some pretext, and later, Nirav discovered that his house had been burgled, with the same carpenter suspected of the crime. The accused broke open a drawer of a cupboard in the bedroom and stole Rs 4 lakh in cash.
A police complaint was promptly filed, and the complainant also sought an insurance claim from the company. However, the insurer rejected the claim, citing a specific policy clause. This clause stated that the company would not be responsible for losses occurring on the premises after business hours unless the money was kept in a locked safe or strong room.
Arguments Presented
The insurance company argued that the complainant was required to take reasonable steps to safeguard the property and ensure that the cash was stored in either a safe or a strong room. They emphasized that a wooden cupboard does not meet these security standards, as it lacks the robustness and complex locking mechanisms of a proper safe.
Forum's Observations
The forum carefully examined the case and observed that a locked safe is defined as a robust, secure, and lockable container—typically made of metal—designed to protect valuables from theft, fire, and damage. It features a complex locking mechanism that enhances security.
In its ruling, the forum stated, "No doubt, a wooden cupboard drawer with a lock is safer than an unlocked one for deterring casual access, but it is not completely secure against determined intruders. Professional burglars can bypass most furniture locks with tools like screwdrivers or crowbars; it is about increasing difficulty, not impossibility. A wooden cupboard is not considered a safe place to keep valuable things."
Final Ruling
The forum concluded that the complainant kept office cash in a cupboard that is not equivalent to, or an alternative to, a strong room. Under such circumstances, the forum found no deficiency in service on the part of the insurance company. Consequently, the complainant's claim was deemed not maintainable, and the complaint was dismissed.
This ruling underscores the importance of adhering to specific policy terms regarding the storage of valuables and highlights the legal distinction between everyday furniture and secure storage solutions like safes or strong rooms.
