IMPORTANT POINTS
(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 escape its liability in terms of the Insurance Policy.
(2) Final Word – The Surveyor’s Report is not the final word and it is not binding upon the insured or insurer.

ORDER

The present Consumer Complaint has been filed under Section 21 of the Consumer Protection Act, 1986 (for short “the Act”) by M/s Flowtex Products (hereinafter referred to as the Complainant Company) against Opposite Party, i.e., United India Insurance Co. Ltd. (hereinafter referred to as Opposite Party Insurance Company).

2. The brief facts of the case are that the Complainant Company, which is engaged in the business of manufacturing of Plastic Disposable Cups, Glasses, Containers etc. in different sizes and shapes using different raw materials like plastic granules, inks, dyes, packaging materials etc., obtained a Standard Fire & Special Perils Insurance Policy bearing No. 500700/11/10/11/00000106 dated 13.7.2010 for the period 14.7.2010 to 13.7.2011 from the Opposite Party Insurance Company covering the risk of fire and allied perils for the sum insured of Rs.1,00,00,000/- on factory shed buildings (without plinth), and for the sum insured of Rs.3,00,00,000/- on contents viz. the Plant Machinery & Accessories, Electrical Installations, Fittings, Cables, Control Panels etc. by paying a sum of Rs.64,856/- towards insurance premium to the Opposite Party Insurance Company. Unfortunately, during the currency of the Policy, on 16.4.2011, at around 3:15 AM, a serious fire broke out in the factory which could be controlled only in about 10 hours with the joint efforts of the Factory workers and the Fire Brigade with 15 odd Fire Tenders. The buildings, Plant & machinery, the Electrical Installation and the stocks including packing material were destroyed/ severely damaged by the said fire. The fire incident was immediately informed to the Opposite Party Insurance Company.

3. Vide letter dated 17.4.2011 the officer-in-charge of the Fire Station wrote to the Police Station to register an FIR as initially they presumed that certain provisions of the West Bengal Fire Service Act, 1950 were not found complied with at the insured factory. At the instance of the Fire Station, the Police Authorities from Shibpore Police Station investigated into the occurrence and concluded that the fire was probably caused by a short-circuit. The Police reported that no foul play was detected behind the incident and nothing was removed from the factory premises, prior and after the fire incident. The Fire Brigade also submitted its Fire Report dated 28.6.2011 to the Presidency Magistrate Howrah detailing the property which was totally damaged in the fire incident. As to the cause of fire, the Fire Brigade recorded that the cause of fire could not be ascertained. A Surveyor along with Insurance Company’s Chief Regional Manager Mr. P. Sarkar & Mr. A.K. Mukherjee visited the factory on 17.4.2011 and took note of the damage caused by the fire.

4. It is the case of the Complainant that as a result of the destruction caused by the fire, it had suffered a huge loss of Rs.4,79,98,140/-, however, he was surprised when he received a letter dated 27.7.2012 from the Opposite Party Insurance Company denying the claim and repudiating liability under the Insurance Policy.

5. On 31.7.2012 the Complainant wrote to the Opposite Party to provide the reports upon which the denial of the claim was based. A copy each of the report of Surveyors M/s Rakesh Kapoor & Co. and the report of M/s Truth Labs was thereby provided to the Complainant. On a study of the Survey Report and also the report of M/s Truth Lab the Complainant found that both the Reports contained a large number of anomalies and inconsistencies and were biased in favour of the insurers. All the allegations made in the Reports were point by point countered in a detailed reply was sent by the Complainant to the Opposite Party Insurance Company.

6. The matter for forensic examination of the three samples drawn from the fire affected debris by the Police was sent on 26.4.2011 by the learned Judicial Magistrate to the Office of the Director-cum-Senior Chemical Examiner, Forensic Science Laboratory, Government of W