NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
C. Viswanath, Presiding Member and Ram Surat Ram Maurya, Member
M/s. P.P. Rubber Products P. Ltd. – Complainant
versus
M/s. The New India Assurance Co. Ltd. – Opp. Party
Consumer Case No.448 of 2019
Decided on 30.6.2021

IMPORTANT POINT
Complainant failed to prove that fire, which had taken place on 13.03.2016 at 2.30 pm at his premises was due to any of the perils covered in the Insurance Policy.

Headnote:

Consumer Protection Act, 1986 – Section 17 (Consumer Protection Act, 2019 – Section 47) – Complaint - Complainant company is engaged in business of manufacturing and selling of footwear, slippers, sport shoes, P.U. Footwear, etc., in Vishwakarma Indl. Area, Jaipur - Respondent insured factory and goods of complainant from 13.10.2015 to 12.10.2016, coverage extended for building and superstructure for Rs.1,00,00,000/-, for plant, machineries and accessories, for Rs.3,00,00,000/-, for furniture, fittings and fixtures, for Rs.1,00,00,000/- and for stock and stock in process, for Rs. 7,00,00,000/- - On 13.03.2016, fire broke out at 1st flr. of Complainant’s premises, engulfed 1st and 2nd floors, damaging building, plant, machineries, accessories, stocks of finished and stocks – Complainant informed Respondent immediately - Insurance Surveyors & Loss Assessors after a preliminary survey submitted report dt. 28.03.2016, assessed damages of Rs. 7 to 8 crores – Case was registered under Section 427 IPC and police ruled out fire took place due to short circuit - Forensic, Truth Labs submitted its report dt 18.10.2016 that fire was not caused due to electrical short circuit or due to chemical and mechanical failure but on account of use of extraneous fire accelerants at multiple locations, assessed net loss as Rs.3,70,72,674/- - State Forensic Science Laboratory, Jaipur mentioned cause of fire being electric short circuit - Proved that cause of fire due to electric short circuit was noted only on the basis of report of the Director - No independent investigation regarding cause of fire - On physical examination, electrical switches, switch boards and cable found intact, which ruled out fire from short circuit - Complainant failed to prove that fire, which had taken place on 13.03.2016 at 2.30 pm at his premises was due to any of the perils covered in the Insurance Policy.

Held: The complainant relies upon the report M/S Apex Insurance Surveyor & Loss Assessor Pvt. Ltd. dated 28.03.2016, Preliminary report of Mehta & Padamsey Insurance Surveyor & Loss Assessor Pvt. Ltd. dated 23.03.2016, final report of Mehta & Padamsey Insurance Surveyor & Loss Assessor Pvt. Ltd. dated 01.02.2017, report of Mobile Forensic Unit Jaipur (Rural) dated 30.08.2017, report of S.I. Manohar Lal dated 02.04.2016 and report of Fire Brigade Office, Nagar Nigam Jaipur. Opening paragraph of the report dated 28.03.2016, submitted by M/S Apex Insurance Surveyor & Loss Assessor Pvt. Ltd. reads as “As per your office instruction we have conducted survey & examined the damages of the above unit at insured premises and collected necessary claim documents for conducting preliminary survey of the aforesaid loss”. The column against “Cause & Circumstances of Loss” reads as “As reported that due to electric short circuit in the first floor PU section of finished goods of stocks placed, electrical sparking fell over cartoon of packing shoes, which soon caught fire and immediately engulfed nearby cartoon stocks & after this fire spread to adjoining blocks and soon took devastating turn engulfing entire first and second floors damaging entire building, plant & machine and all stocks”.

From aforesaid passage, it is proved that cause of fire due to electric short circuit was noted only on the basis of report of the Director. In the entire report, there was no independent investigation regarding cause of fire. No reliance can be placed upon this report, for determining the cause of fire in the premises of the company.

Truth Lab, in its report dated 18.10.2016, at paragraph-4 of Observations and Findings has noted as “Electrical panel board in the first floor was found superficially burnt while the electrical cable was found intact. Its photograph has also been shown. At paragraph-5 noted as “electrical switches and switch board in the first floor was found intact. Its photograph has been shown. Apart from above facts, Truth Lab, in its report dated 18.10.2016, has given reasons that (i) C8, C12, C14 and C19 (i.e. hydrocarbons) were found in all the samples of burnt debris, which proved that fire was caused from extraneous fire acceleration such as kerosene or diesel oil and not due to short circuit (ii) On physical examination, one electric switch board of first floor was found superficially burnt and other electrical switches, switch boards and cable was found intact, which ruled out burn from short circuit. (iii) Incident took place on Sunday, which was a holiday for the factory and the machines were not operating as such there was no chance of electric short circuit, (iv) There was no combustible material on the staircase to second floor for spreading the fire to second floor from first floor and (v) At Vishwakarma police station, the case was registered under Section 427 IPC, which ruled out fire took place due to short circuit. On its basis, it has formed opinion that the fire had not taken place due to electric short circuit. It is alleged that through a steel ramp, fire spread over second from first floor. But it does not inspire any confidence.

The complainant has failed to prove that the fire, which had taken place on 13.03.2016 at 2.30 pm at his factory premises was due to any of the perils covered in the Insurance Policy. In view of aforementioned discussions, we do not find any illegality in the order of the respondent dated 31.03.2017, repudiating the Insurance claim of the complainant. On the aforesaid finding, we have no need to decide other issue relating to quantum of loss. (Paras 8, 11 & 12)

Result: Complaint Dismissed.