IMPORTANT POINTS
(1) A person engaged in commercial activities can buy goods or avail services for his personal use and is within the scope of Consumer Protection Act.
(2) Insurance service falls within inclusion clause of the “service” as defined under Section 2 (1) (o) the Act, 1986

ORDER

Heard Mr. Ashok Mathur, Advocate, for the complainant and Mr. Yogesh Malhotra, Advocate, for the opposite party, through video conferencing.

2. Modi Dyeing & Bleaching Works (the complainant) (hereinafter referred to as the Insured) filed aforementioned complaint, for directing National Insurance Company Ltd. (the opposite party) (hereinafter referred to as the Insurer) to pay Rs.35578289/- as balance insurance claim, under Insurance Policy No.261300/11/11/3300000513, (hereinafter referred to as Policy No. 513), interest at the rate of 18% per annum on the said amount and any other or further relief which may deem fit and proper in the circumstances of the case.

3. The facts as been stated in the complaint and emerged from the documents attached with the complaint are as follows:-

(a) The Insured was a partnership firm and engaged in the business of dyeing and bleaching of grey cloth at its factory situated at 43/2, Amina Compound, Dhamankar Naka, Bhiwandi, district Thane, Maharashtra since 1964. Initially it was a hand pressing unit. In 1993, it was converted into a power processing unit. The Insurer was a Public Insurance Company and engaged in business of providing Insurance Services. The Insured used to obtain Standard Fire and Special Peril Policy from the Insurer since 2008. The Insured obtained Standard Fire and Special Peril Policy i.e. Policy No. 513, on 12.09.2011, which was valid from 12.09.2011 to midnight of 11.09.2012, extending total coverage of Rs.155900000/-. The list of the properties insured was attached with the policy.

(b) On 13.01.2012, at about 4:40 hours, the workers engaged in steam sender on the first floor of Unit-1, observed a flaming cloth bale from the upper second floor level, falling through the goods well opening between the floor levels at the north-west end, over the trolley at stented take up end. Due to which bales of loose cloth in trolley on first floor were ignited. On checking, it was found that a stack of fabric bales stored at the second floor under hot air exhaust duct was burning. Fire engulfed at third floor also. The security guard immediately informed, nearest Fire Service Station at Dhamankar Naka, from where fire tenders were sent on the spot. Within 15 minutes fire tenders from Nizampur and Bhiwandi also reached on the spot. They could extinguished the fire at about 5:15 hours on 13.01.2012. As 13.01.2012 was Friday, which weekly holiday of the factory as such it was closed at 8:00 hours. On 13.01.2012, at about 23:30 hours, Security Guard Ramdhari Tiwari, observed smokes and flames emanating from second floor of Unit-1. He immediately informed Fire Service Station at Dhamankar Naka, from where fire tender was sent on the spot and fire was extinguished within 10 minutes. The incident was reported to jurisdictional police station, who later on recorded Panchnama.

(c) The Insured informed the Insurer about the fire incident at his business place on 13.01.2012, on which, the Insurer appointed Sunil J. Vora & Associates, Surveyors, Assessors & Valuers, Mumbai, for survey and assessment of the loss. The Surveyor visited the spot on 13.01.2012 at 17:00 hours and remained there till 20:15 hours. He verified the damages, took photographs/videography and prepared inventories. The Surveyor again inspected the spot on 15.01.2012, 16.01.2012 and 01.02.2012. The Surveyor took statements of the witnesses in writing and time to time collected necessary papers from the Insured. However, his report was delayed unreasonably.

(d) The Insured submitted his application on 14.01.2012 to the Insurer, showing tentative damages of Rs.13.75 crores. Later on a Claim Form on printed proforma was submitted on 25.01.2012 and another Claim Form on printed proforma was submitted on 04.04.2012, with a list showing total damage of Rs.8 crore.

(e) The Insured moved applications for on-account payment, dated 06.03.2012, 04.05.2012, 23.08.2012, 06.11.2012, 17.12.2012 and 16.05.2013, for want of report