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SUBHASH CHANDRA, J. RAJENDRA
Liberty Oil Mills Limited – Appellant
Versus
Oriental Insurance Company Ltd. – Respondent
JUDGMENT
AVM J. Rajendra, AVSM VSM (Retd.), Member—The present Consumer Complaint has been filed under Section 21 of the Consumer Protection Act, 1986 (for short “the Act”) against the Opposite Parties seeking to direct the OPs:
“A. Pay to the Complainants the sum of INR 10,88,02,467/- along with interest 15 % per annum.;
B. Pay to the Complainants the sum of INR 2,50,00,000 /- towards compensation as damages for the gross deficiency in service and having caused hardship and irreparable injury to the Complainants;
C. Secure the amount as mentioned at Prayer(A) pending hearing and final disposal of these proceedings;
D. Pay the costs of these proceedings;
E. Pass such further order as this Commission may deem just and proper in the facts and circumstances of the case.”
2. Brief facts of the case are that on 31.03.2015, a fire broke out at the Complainant’s Plant, causing substantial damage and financial loss. Since the Plant was insured under the Reinstatement Insurance Policy, the Complainant informed OP, along with Police Authorities, Factory Inspector and the Tehsildar. These authorities inspected the site and prepared respective reports. The Deputy Director Industrial
(1) Adverse Claim – The law mandates that a party confronted with an adverse claim must voice its opposition; failure to do so results in a deemed acceptance of the allegations or facts asserted agai....
(1) Contract of Insurance – It is well settled that a contract of Insurance is to be honoured strictly in terms of the conditions specified in the Policy without making any alteration in the words us....
The insurer's repudiation of a claim must adhere to statutory timelines; arbitrary and unfounded repudiation constitutes deficiency in service.
Second Surveyor – In the present case, there no valid reasons are stated for the appointment of the second surveyor. There is nothing to suggest that the first surveyor’s report to be arbitrary or th....
Surveyor – The assessment made by a surveyor holds significant importance.
Insurance companies must provide substantial proof when denying claims; unjust repudiation leads to enforceable obligations to pay agreed amounts.
Insurance claims must be assessed justly, with surveyor reports not being conclusive and subject to scrutiny.
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