The insurance claim was rightly repudiated as the loss caused by rainwater was not covered under the policy terms.

1. This complaint, under S.17 of the Consumer Protection Act, 1986 (hereinafter referred to as "the Act" for short) has been filed by the complainant alleging unfair trade practice and deficiency in service on the part of the opposite parties in not paying the amount of its insurance claim and seeking directions to them for payment of loss suffered due to spontaneous combustion in the sponge iron stock of Rs. 29,70,000 (Twenty Nine Lacs Seventy Thousand) along with interest @ 18% p.a. from the date of incident, i.e. 6.4.2018 and compensation for mental agony to the complainant Rs. 5,00,000 (Five Lacs) cause due to unfair trade practice, deficiency in service committed by the opposite parties. Cost of litigation along with any other relief which this Commission deems fit to award have also been sought.

2. In nutshell the facts of the case are that the complainant obtained a Standard Fire and Special Perils Policy on 16.2.2018 vide policy No. 1911001117P116664971 covering the risk for the period between 18:00 hrs of 16.2.2018 to 15.2.2019 midnight and paid premium of Rs. 34,909.00 including the three add - on covers of earthquake, STFI Cover, spontaneous combustion. The opposite parties covered the complainant's sponge iron plant situated at Vill. Munrethi, Siltara, Dharsiva, Raipur (C.G.) 493221 particularly the building including boundary wall, plant & machinery, raw material, stock in process, stock of sponge / coal and finished goods. On 6.4.2018 there was heavy storm / tempest / flood / inundation in Raipur, which continued even on 7.4.2018, in support of which newspaper reports' cuttings have been filed. As per the complainant due to said storm / tempest the sheets of the shed blown away and rain water entered in the bunker where the sponge iron was stocked. When the rain water came into contact with the sponge iron due to chemical reaction (spontaneous combustion) the sponge iron stock was damaged. Immediately the incident was intimated to the opposite parties through email dated 7.4.2018 and the insurance broker through which the policy was obtained and the Insurance Company was requested to register claim and appoint a surveyor.

3. Thereafter on 14.4.2018 the complainant filed duly filled fire insurance claim form, Annexure A - 3. In turn the opposite party Insurance Company deputed Mr. Rajiv Dausage as surveyor to conduct survey of the insured property and to assess the loss, who in turn inspected the insured property and the damaged stock, collected samples and asked the complainant to submit certain documents. As requested by the surveyor, the complainant submitted all the requisite documents including a copy of the insurance policy, claim form, paper cutting, estimate of loss, closing stock, costing of material, annual reports with balance sheets for FY 2015-16, 2016-17 and trial balance sheet of FY 2017-18, purchase register for three months, sale register for three months, salvage value of sponge iron, flow chart and drawing of the plant to the surveyor on 16.5.2018. Copy of the said letter is filed as Annexure A - 13. Based on the quantity of stock kept at the insured property and the extent of damage to such stock, the complainant has estimated the total loss at Rs. 29,70,000, but despite fulfilling own part and obligations by the complainant and several requests made to the Insurance Company the opposite parties Insurance Company have failed to timely respond and pay