The insurer cannot deny compensation for consequential losses due to a claim exclusion where the policy covers such interruptions caused by external violence.

1. This complaint is filed for a claim of Rs. 3,06,54,018 along with interest @ 21% p.a. from 25.7.2008 till the date of actual payment and for Rs. 1.00 crore towards mental harassment and also claiming cost of litigation in respect of Consequential Loss (fire) policy bearing No. 201100/11/07/07/00000364 ( hereinafter referred to as ˜Policy No. 2').

2. The brief facts of the case as narrated by the complainant in the complaint are that it is a Company incorporated under the Companies Act, 1956 having its registered office at Village Bhamian Kalan, Tajpur Road, Ludhiana. Complainant vide its resolution dated 5.5.2011 of the Board of Directors authorized Shri V. Krishnan to file the present complaint. It is submitted that the company was set up in the year 1996 and had a turn over of Rs. 253 crores for the financial year 2010-11 and was having about 285 employees and is dealing in the business of manufacturing high quality printed cartons, corrugated cartons, card board packing, corrugated packing, plastic packing and polythene packing, plastic injection and blow moulding products and also has one of its factory / manufacturing in Unit - I and II at Plot No. 15-18 Industrial Growth Centre, Samba, Jammu & Kashmir. With respect of these two units, the complainant purchased two insurance policies from Opposite Party No. 1 - United India Insurance Company (hereinafter referred to as the ˜Insurance Company'). One insurance policy was Standard Fire and Special Perils Policy bearing No. 201100/11/07/11/00000363 ( hereinafter referred to ˜Policy No. 1') which was valid for the period from 29.10.2007 to the midnight of 28.10.2008 having insurance cover ofRs.60,00,06,000. The complainant also purchased Consequential Loss ( Fire) Policy which has been termed as Policy No. 2 and was valid for the same period, i.e. midnight of 29.10.2007 to midnight of 28.10.2008 for a total sum of Rs. 15 crores. Policy No. 2 covered loss and damages suffered by the complainant on account of destruction and damage in the business premises and if for that reason the business could not be carried out at the said premises, then the insurance only to the tune of Rs. 14.00 lakh which was contrary to the terms and conditions of the insurance policy. The complainant wrote several letters claiming sum of Rs. 3,06,54,018 from the Insurance Company for the loss to be calculated under Policy No. 2. On these contentions, the present complaint has been filed. company would pay the consequential loss which has been occurred to the complainant onaccount of such interruption or interference. In July, 2008, there was a huge agitation against the Government's move to acquire land belonging to Amarnath Shrine Board in various areas of Jammu and Kashmir and such agitation also happened in the city of Samba. There were protest rallies, strikes and riots. There was a curfew imposed by the Government in the various areas of the State including Samba. On 25.7.2008 at around 10.30 a.m., mob of around 200-250 persons armed with lathis and stones gathered at the factory of the complainant and insisted upon the complainant to close the factory and, thereafter, rioting started and they entered into the factory and damaged the property of the complainant and also put their stock to fire. Unit No. 1was, thereafter, closed and angry mob also entered into the Unit No. 2 and also damaged the machinery and the stocks lying there and also burnt them. Due to damage to the units, the work in the factory was completely stopped and no production or manufacturing activities were possible. This disruption