Insurers must indemnify losses covered by policy terms regardless of bailee situations, reaffirming the principle of indemnity in insurance contracts.

1. Heard Mr. Ashok Anand, Advocate, for the complainant and Mr. J.P.N. Shahi, Advocate, for opposite parties - 1 and 2.

2. Subrat Jalan has filed aforementioned complaint for directing New India Assurance Company Ltd. (the Insurer) to pay (i) insurance claim of Rs.1,05,06,735 with interest @12% per annum, from the date of the loss till its actual payment, (ii) Rs.5 lacs as the compensation for mental agony and physical harassment, (iii) the cost of litigation and (iv) any other relief which may be deemed fit and proper, in the facts and circumstances of the case.

3. The facts, as stated in the complaint and emerged from the documents attached with the complaint, are as follows:
(a) The complainant was a sole proprietor of M/s. Kamadgiri Fabrics Sahebganj, Gorakhpur (hereinafter referred to as the Insured). The Insured was engaged in manufacture of different kind of fabrics and trading to various cities in India. For supply of the fabrics to other cities, the Insured had contracts with the transporters, under which, the Insured used to supply the fabrics in bales to the transporters at its factory premises in Gorakhpur, who used to transport and store at their own godowns, from where, it used to be supplied to the traders, as per order. The Insured had contract with M/s. Kaka Transport Company (opposite party - 3) for supply of the fabrics to Delhi, who had its godown at 32 - A, Shyam Enclave, U.P. Border, Sahibabad, Ghaziabad.
(b) New India Assurance Company Ltd. (for short the Insurer) is a public Insurance Company, engaged in the business of providing insurance services of different types. The Insured obtained Policy No. 421300/11/10/13/00000031, i.e. Standard Fire & Special Perils Policy (Floater Policy) for a sum of Rs.325 lacs, for the period of 19.4.2010 to 18.4.2011, of "Industrial Manufacturing Risk", i.e. stock with jobbers, the factory premises and the transporter's godowns, total of forty - eight locations in the country, a list of which has been attached with the policy. Godown of M/s. Kaka Transport Company, 32 - A, Shyam Enclave, U.P. Border, Sahibabad, Ghaziabad, was mentioned at serial No. 35 of the list, attached with the policy.
(c) The fire was broke out in the godown at 32 - A, Shyam Enclave, U.P. Border, Sahibabda, Ghaziabad, on 12.4.2011 at about 8.10 hours, due to electric short circuit. Ravi Dube, an employee present there, informed Hindon Fire Service Station, from where, fire tender was sent on the spot. By the time, fire tender could reach on the spot, the fire spread to the whole godown as such other fire tenders from Link Road, Modi Nagar, Hapur and Noida were also called for and they extinguished the fire. U.P. Fire Service, Hindon has given its report dated 15.4.2011. Information regarding incident was also given to Sahibabad Police Station, where it was registered vide Rapat No. 48 on 13.4.2011.
(d) On receiving information of the fire, the Insured informed the Insurer at its office in Gorakhpur on 15.4.2011. The Insurer appointed V.P. Singhal & Company, Noida, on 15.4.2011, for preliminary survey. The representative of V.P. Singhal & Company inspected the godown on 16.4.2011 and submitted his preliminary report dated 17.4.2011, mentioning that fire was caused due to electric short circuit in the godown and damaged the entire stock.
(e) The Insurer appointed Sanjay Dwivedi & Associates, Surveyor & Loss Assessor, Ghaziabad,on 15.4.2011, for survey and assessment of the loss. The Surveyor inspected the godown on 16.4.2011, 17.4.2011 and 18.4.2011 and took photographs and prepared inventories. The Surveyor demanded various papers from the Insured time to time and also took st