Surat: The Surat Consumer Disputes Redressal Commission (CDRC) has upheld an insurance company’s decision to reject a Rs 5 lakh theft claim, ruling that the theft did not meet the policy conditions for burglary or housebreaking.The insurance company had rejected the claim on the ground that the goods were not stolen through burglary or housebreaking but by an employee of the firm while the shop was open.According to the case details, textile trader Prakash Prajapati owned a wholesale shop dealing in chaniya cholis, saris and dress materials. He had a business package policy with SBI General Insurance, effective from Oct 19, 2018, with a risk cover of Rs 10.50 lakh.On Sept 7, 2019, when Prajapati was away from the shop, his employee Soma Patel allegedly stole apparel worth around Rs 5 lakh. CCTV footage from the market showed Patel leaving the shop with the goods. Prajapati subsequently approached Varachha police and lodged a complaint of theft.Following the FIR, police arrested Patel and recovered goods worth Rs 82,977.Meanwhile, Prajapati filed an insurance claim for Rs 5 lakh. The insurer rejected the claim through a letter dated Feb 3, 2020. Prajapati then approached the Surat CDRC, seeking payment of the remaining Rs 4.17 lakh.During the hearing, the insurance company argued that the policy covered theft only when it involved burglary or housebreaking. The policy required evidence of forcible and violent entry into or exit from the premises by the person committing the theft. Since the employee had allegedly stolen the goods while the shop was open and without causing any damage to the property, the insurer argued that the claim was not covered.The consumer commission observed that neither the complaint nor the FIR mentioned any damage to the shop or evidence of forced entry. It also noted that the theft had taken place during working hours and had allegedly been committed by an employee.As the circumstances of the theft did not meet the policy conditions for burglary or housebreaking, the commission held that the insurance claim could not be allowed
