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NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
V.K. Jain, Presiding Member
National Insurance Co. Ltd. and Anr. —Appellants
versus
Kopargaon Sahakari Sakhar Karkhana
Ltd. and Ors. —Respondents
First Appeal No.580 of 2012 and First Appeal No.166 of 2013
Decided on 9.11.2020
For Kopargaon Sahakari:Mr. M.Y. Deshmukh and Ms. Manjeet Kirpal, Advocates
For National Insurance Co. Ltd.:Mr. Ravi Bakshi and Ms. Sayma Feroz, Advocates
For State of Maharashtra: Ex-parte
IMPORTANT POINT
State commission held not justified in directing the insurer to pay Rs. 49 lacs to complainant.
Headnote:
Consumer Protection Act, 1986—Section 19 : [Consumer Protection Act, 2019—Section 41]—Insurance claim—Blast in boiler—Damages—Repudiation of claim—Scope—Both the surveyors inspected the premises of the complainant and jointly reiterated the defects and deficiencies—Nominee of State Insurance Fund also reiterated the defects and deficiencies—No reason found to reject the joint report—Policy taken by complainant was not a machinery insurance policy—Certificate given by inspectors of Boiler dies not rule out the defects/damages found by the Surveyors—State commission held not justified in directing the insured to pay Rs. 49% loss to complainant. (Paras 4 to 21)
Result: Order accordingly.
JUDGMENT
V.K. Jain, Presiding Member.—The complainant is running a sugar factory in Maharashtra. The complainant had obtained an insurance policy from M/s National Insurance Company Ltd. appellant in FA No. 580 of 2012 and respondent in FA No. 166 of 2013 which included insurance of boiler No. GT 23, to the extent of Rs. 1.60 crore, for the period from 01.02.2005 to 31.01.2006. The case of the complainant is that crushing season of sugar factory starts in October and ordinarily lasts till April next year and maintenance work is undertaken after the crushing season is over. The Boiler Inspector carries out inspection and suggests maintenance and repairs, which are duly carried out. This is also the case of the complainant that on 20.10.2004 the Boiler Inspector had inspected the boilers including boiler No. GT23 and had found the same to be fit for operation. A certificate dated 17.11.2004 was issued by the Boiler Inspector after carrying out the inspection on 20.10.2004.
2. According to the complainant a blast/explosion took place in boiler No. GT 23 at about 9.15 p.m. on 12.05.2005 due to which two tubes attached to the boiler got snapped/detached. The boiler was stopped immediately and more water inducted to prevent further damage. On intimation being given to him, Boiler Inspector inspected the damaged boiler on 14.05.2005 and submitted a report dated 31.05.2005. The damage to the boiler was intimated to the insurer, which appointed a surveyor namely Mr. Pradeep Tambe who inspected the boiler and assessed the loss to the complainant. Vide his report dated 30.05.2005 the surveyor Mr. Pradeep Tambe of M/s Standard Surveyors Pvt. Ltd. reported as under:-
“With reference to photographs taken by the Insured and the basis of our inspection of tubes or the boiler, we have to say that:-
(i) Two numbers of boiler tubes had slipped off from the connection with the drum. This connection was made by expanding of tubes in boiler shell holes made for the purpose of connection.
Refer photograph no. 7 & 17.
(ii) Other many tubes had become loose in expanded portion, which were marked by chalk.
(iii) The tubes were seen buldged for rest of the portion of length of tubes.
(iv) In the region of expansion of tube, heavy corrosion was observed.
(v) Majority of these tubes were fitted in 1986 and had served their useful life.”
Taking into consideration all above observations & photographs, we are of the opinion that the loss was occasioned by wasting of the tube material in way of expansion joint due to corrosion which is a slow deterioration over a period of about 20 years, resulted into failure of expanded joint of tube with steam drum.
3. Vide its letter dated 22.06.2005 the insurer repudiated the claim. The said letter dated 22.06.2005 to the extent it is relevant reads as under:-
Our Regional Office had appointed Shri Pradeep Tambe, Surveyor to ascertaining the exact cause of loss who carried out the inspections about reported loss on 27-5-2005 at site & submitted his report According to the report.
1. Two numbers of boiler tubes had slipped off from the connection with the drum. This connection was made by expanding of tubes in boiler shell holes made for the purpose of connection.
2. Other many tubes had become loose in expanded portion, which were marked by chalk.
3. The tubes were seen bulged for rest of the portion of length of tubes.
4. In the region of expansion of tube heavy corrosion was observed.
5. Majority of these tubes were fitted in 1986 and had served their useful life.
Based on the above observations and photographs the loss was occasioned by wasting of tube material in way of expansion joint due to corrosion which is a slow deterioration over a period of about 20 years resulted into failure of expanded joint of tubes with steam drum. Further bulging of tubes in general ,s also in one direction only indicating that it has happened due to long usage.
All above reasons are detailed In exclusion no. 5 o
