The court held that the insurer inadequately assessed the loss of profit claim, directing full payment under the policy due to incorrect accounting of plant profits.

1. The present Consumer Complaint has been filed under S.21 of the Consumer Protection Act, 1986 (hereinafter referred to as the Act) by M/s. Mangalam Organics Limited, Mumbai (hereinafter referred to as the Complainant Company) against The New India Assurance Company Limited (hereinafter referred to as the Opposite Party Insurance Company).

2. Brief facts as narrated in the Consumer Complaint are that the Complainant Company M/s. Mangalam Organics Limited (earlier known as Dujodwala Products Limited in the year 1981 and subsequently known as Allied Colloids Pvt. Ltd. in the year 1992) is engaged in the manufacture of Terpene Products such as Camphor Technical, Camphor A Grade, Camphene, Isoborneol, Dipentene, Sodium Acetate Trihydrate, Camphor Oil, Pine Oil, Pine Tar, Resin Products such as Terpene Phenolic Resin, Penta Ester Gum, Glycerol Ester Gum, Alkyl Phenolic Resin, Phenol Formaldehyde Resin, Gum Rosin etc. The Complainant Company is an ISO certified Company and is a Government recognized Export House with customers in Europe, USA, Africa and Middle East. The Factory of the Complainant Company comprised of various departments for the storage, production and Office. One Block of the Factory was used for Resin Plant for manufacture of various Resin Products and other Block comprises of a Camphor Plant used for the manufacture of Camphor Products. The Complainant Company obtained three Insurance Policies, i.e., Standard Fire Policy No. 11080011150100000168, the Declaration Policy No. 11080011150200000001 and Loss of Profits during Business Interruption Period Policy No. 11080011150500000002 valid from 1 May, 2015 to 30 April, 2016 from the Opposite Party st th Insurance Company for covering the risk of Building (Super Structure / Plinth & Foundations), Plant & Machinery (P&M), Furniture, Fittings, Fixtures ("FFF"), Stock and Stock (Work - in - progress) at the Factory and also the Loss of Profit (LOP) during the business interruption period. During the currency of the Insurance Policies on 22 June, 2015, due to short - circuit there was a major fire accident at about 12:30 hours in the Resin Plant located in the Factory. Upon noticing the fire, the power supply of the entire Factory was isolated and the Plant Operations, including the Boiler Line, Chilling Plant and other Common Utilities were completely shut down as the path of the power cables, the boiler pipelines and the other utility lines moved close to the origin of fire at the Resin Plant. The fire which broke out in the Resin Plant reached the Common Utilities connected to the Camphor Plant. Having no alternative arrangement to cool off the Camphor Plant, maintain the temperature and to prevent the possibility of an explosion, resulting from the exothermic heating of the material charged in process at the various Reactors at the Camphor Plant, the Complainant Company was compelled to drain out Work - in - Progress (WIP) items in the Reactors, Columns and Pipelines to avoid fire / explosion in the Camphor Plant. It is the case of the Complainant Company that if drain out of Work - in - Progress was not done, the Camphor Plant would have also caught fire and it would have lead to an enormous loss to the tune of 80-100 crores. The Opposite Party Insurance Company was informed about the fire incident on 22nd June, 2015, who appointed M/s. Allied Insurance Surveyors & Loss Assessors Pvt. Ltd. (hereinafter referred to as the First Surveyor) to assess the loss. The First Surveyor visited the Factory to assess the loss, where Surveyor was categorically informed that to avoid possibility of a major catastrophe taking place in Camphor Plant and the