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C. VISWANATH, SUBHASH CHANDRA
Detco Textiles Pvt. Ltd. – Appellant
Versus
New India Assrance Company Ltd. – Respondent
ORDER
The Complainant is a Company engaged in the business of processing and dyeing all types of shirting and blended fabrics including 100% Cotton, Polyester/Viscose, Polyester/Cotton/Viscose and Yarn Dyed. Opposite Party No.1 is engaged in the business of providing general insurance services. Opposite Party No.2 is engaged in the business of carrying out insurance surveys.
2. Case of the Complainant is that they purchased Standard Fire and Special Perils Policy No.131000/11/13/01/00000221 dated 08.05.2013 from Opposite Party No.1 by paying a premium of Rs.2,48,934/-. The Policy was valid from 12.05.2013 to 11.05.2014 and covered the risk to stocks at Tarapur Plant due to fire, lightening, explosion/implosion, aircraft damage etc. The Policy was issued with the knowledge of risks involved in the business of the Complainant.
On 25.05.2013, at about 00.15 hrs. fire broke out in the Tarapur Plant, which was used to store the finished stocks. The fire occurred due to short circuit in the tube-light on the first floor of the main building. The fire spread rapidly because of huge stocks kept in the main building and engulfed 320 KVA Generator Set as well as 750 KVA transformer installed
Assessment - The Complainant, therefore, cannot be allowed the amount beyond the assessment of the Surveyor.
(1) Liability of Insurance Company – Whether the fire took place by a short circuit or any other reason, as long as the insured is not the person who caused the fire, the Insurance Company cannot esc....
The court established that a consumer can claim under the Consumer Protection Act for insurance disputes, even with commercial intent, emphasizing assessment fairness by the appointed Surveyor.
Insurance companies must provide substantial proof when denying claims; unjust repudiation leads to enforceable obligations to pay agreed amounts.
1. Insurance claim cannot be inordinately delayed.2. Delay will result in payment of interest to ensured.3. Random inspections and obsequious objections cannot be grounds to hold up claims
(1) Fire - On merits, once it is established that there was fire, it is settled law that it is upon the Insurer to prove that the fire was intentionally caused by the Insured.(2) Burden of Proof - wh....
Assessment - In absence of details relating to stage of production of items, the Surveyor was justified in considering the semi-finished cost rate at 50% of finished cost rate on an average of 50% co....
(1) Constructive approach - A constructive approach, not one that is based on assumptions and surmises with an intention to negate the claim by categorizing it fraudulent is desirable.(2) Industry Ap....
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