IMPORTANT POINT
Insurance Policy – Repudiation of claim – Surveyor;s report cannot be lightly brushed set aside & once survey report is not based on adhocism or is vitiated by arbitrariness, then jurisdiction of consumer forum to go further would stop.

ORDER

Bharatkumar Pandya, Member.—The complainant is filed raising grievance of wrongful rejection of genuine claim lodged for losses and damage suffered by them on account of peril covered under the policy issued by OPs with prayer to direct them to pay the claim as lodged by them. The complainant company is part of Soham group which has been engaged in construction and implementation of hydro power generating projects for over a decade. The complainant company is the owner of a small hydel power generating station in the name and style of “M/s Soham Mannapitlu Power Pvt. Ltd.” at Arambody Village, Near Moodabidri, D.K. District, Karnataka. It is engaged in generation of electricity at its hydel power station at Mannapitlu and sells the electricity so generated to the Government of Karnataka under a Power Purchase Agreement with Mangalore Electric Supply Company. The hydel power project purchased by the complainant was about 75% complete on “as is where is” basis along with necessary government approval. Complainant approached OP 4, the division office of OP 1 for the said project to be insured and covered under an insurance policy, who in turn appointed a surveyor and who in turn inspected the project in March, 2008. The surveyor, being satisfied, recommended the OPs to cover the project under CAR (Contractors All Risk Policy)/EAR (Erection All Risk Policy) until completion of the project; and after completion of project, under IAR (Industrial All Risk) policy. Complainant firstly purchased a Storage-cum-Erection Insurance Policy No.070500/44/08/04/40000001 dated 01.04.2008 for a sum assured to the tune of Rs.89.36 lakhs (Third party liability with cross liability at Rs.1 crore and Clearance & Debris removal at Rs.1 crore) and renewed it till 31.8.2009 by paying the premium covering all risks under Storage cum Erection as stated in the policy. Further, on commissioning the 1st 5MW unit of the plant on 07.09.2009, the project was covered under an Industrial All Risk POlicy (IAR policy) (The initial sum insured was Rs.1,07,39,53,869/- and this sum insured was subsequently enhanced at the time of renewal to Rs.1,23,50,46,949/-) which was renewed upto 10.11.2011. As mentioned in para 4 of the complaint not categorically denied by the OP and as per page 307 of the complaint, on the request of the complainant made on 11.03.2011, the OP made an endorsement dated 15.03.2011 whereby it was agreed and declared that the exclusions as contained in the exclusion clause in the policy, were also to be covered under the insurance policy since inception of the policy, as per the following endorsement:

“Insurer have issued endorsement on 15.3.2010 with effect from 11.11.2010” Not wishstanding anything contained herein to the contrary at the request of the Insured vide their letter dt 10.03.2011. It is hereby declared & agreed that the item be excluded property under exclusions of said policy is held covered from the inception of policy i.e., from 11.11.2010

1. Building (Diversion weir, intake, power channel (Box culvert) FOREBAY, Tailrace Channel & Hydro - Mechanical works comprising gates - Trash - Rack & Penstock - Rs.55,03,06,681/-

2. Factory Building: (Office, Control Room, Turbine Floor, Switch Gear Room) - Rs.2,19,73,344/-

3. Plant & Machinery: (3 x 5 MW Turbo Generator & Switch Yard Equipments & Aliened accessories) Rs.40,29,14,998/

4. Transmission lines; (110 KV Single / Double Circuit Line) - Rs.9,86,48,816/-

5. Computers furnitures & Fixtures-Rs.1,10,000/-.”

The said hydel power station at Mannapitlu operated during monsoon month from water of the river Gurupur/Pacchamogaru – which is a rain fed river in the Western Ghats. During the months from December to May every year, when there is small quantity of water in this river, the maintenance works are carried out by the complainant every year. Complainant always ensured the completion of maintenance works before the onset of the next monsoon and they also engage professio