IMPORANT POINT
Rewriting terms of policy – terms of the insurance policy have to be strictly construed, and it is not permissible to rewrite the contract while interpreting the terms of the Policy.

ORDER

R.K. Agrawal, President.—The present Appeals have been filed against the Order dated 22.08.2016 passed by the Maharashtra State Consumer Disputes Redressal Commission Mumbai (hereinafter referred to as State Commission), whereby the Complaints filed by M/s. Maitri Chem and M/s. Vora Petrochem (hereinafter referred to as the Complainant Company) before the State Commission were dismissed.

2. Since the facts and questions of law involved in both the Appeals are similar, these Appeals are being disposed off through this common Order. However, for the sake of convenience, FA No. 1279 of 2016 is treated as the lead case and the facts enumerated hereinafter are taken from Consumer Complaint No. CC/11/57.

3. Brief facts of the case as narrated in the Complaint are that the Complainant is a proprietary concern doing business of chemicals for self employment and earning their livelihood. They hired godowns at different locations for storing the chemicals. They obtained Floater Insurance Policy bearing No. 140600/11/08/13/00003507 from the New India Assurance Co. Ltd. (hereinafter referred to as the OP Insurance Company) on 23.03.2003 and had been renewing it from time to time on payment of the premium as per demand of the OP Insurance Company. The Policy was having validity from 23.03.2009 to 22.03.2010 for total sum insured of Rs.25 lakh. It is averred by the Complainant they had taken new godown at Niti Wrehouse Gala No. L-1, Bhamre Compound, Bhiwandi, Thane. On 01.10.2009 they informed Mr. Tejas Harshardrai Shah, insurance broker to include the new godown in the existing Floater Policy. Accordingly, Mr. Tejas informed the OP Insurance Company who deputed Surveyor Mr. Rahul Deshpande for pre-risk inspection of the new Godown. Mr. Rahul Deshpande visited the site and submitted the Risk Inspection Report to the OP Insurance Company. Subsequently, OP insurance Company included the new godown, i.e., Niti Wrehouse Gala No. L-1, Bhamre Compound, Bhiwandi, Thane in the said Policy on 05.10.2009 vide Endorsement No. 140600/11/09/13/82000244. It is further stated that unfortunately on 05.10.2009 at around 7:00 PM fire broke out at the other end of Niti Warehouse and spread to all other Galas including Gala No. L-1. Fire Brigade, Police and the OP Insurance Company were informed. OP Insurance Company appointed M/s. Bhatwadekar & Co. as surveyor to assess the loss. The Complainant lodged a claim of Rs.22,43,363/- towards actual loss suffered due to fire with the OP Insurance Company. It is the case of the Complainant that despite providing all the required information and documents the OP Insurance Company vide letter dated 28.05.2010 repudiated the claim of the Complainant on the ground that the above-mentioned Gala was not included in the Policy. Alleging Deficiency in Service on the part of the OP Insurance Company, the Complainant filed a Consumer Complaint seeking following reliefs:-

“a) To allow the complaint

b) To hold and declare that the Opposite Parties are guilty of deficiency in service and unfair trade practices as per the provisions of the Consumer Protection Act,1986;

c) To direct the O.P. to pay the Complainant their claim of Rs. 22,43,363/- (Rupees Twenty Two Lakhs Forty Three Thousand Three Hundred Sixty Three Only) being the actual loss suffered by Complainant due to the fire and covered under the policy along with interest at the rate of 18% p.a. from the date of claim;

d) To direct the O.P. to pay sum of Rs.2,00,000/- (Rupees Two Lakhs Only) towards mental agony suffered by the Complainant;

e) Cost of this complaint be provided to the Complainant;

f) Any other just and reasonable order to meet the ends of justice.”

4. The Opposite Party Insurance Company contested the Complaints before the State Commission by submitting that the OP Insurance Company received telephonic instructions from Mr. Tejas Shah Broker for passing endorsement for addition of new location, i.e., M/s. Niti Warehose Gala No. L-1 Bhamre