The repudiation of the insurance claim was invalid due to the Insurer's failure to substantiate misrepresentation and procedural errors in claim handling and assessment.

1. Heard Mr. Karan Mehra, Advocate, for the complainant and Mr. Amit Kumar Singh, Advocate, for the opposite party.

2. M/s. Abhay Ispat (India) Private Limited (the Insured) has filed above complaint for setting aside repudiation letter dated 7.12.2017 and directing National Insurance Company Limited (the Insurer) to pay (i) Rs. 1,62,23,193 along with interest @18% per annum from the date of loss till actual payment, towards the insurance claim; (iii) Rs. 5 lacs, as the compensation for mental agony and harassment; (iv) the cost of litigation and (iv) any other relief which is 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 are as follows:
(a) M/s. Abhay Ispat (India) Private Limited (the Insured) was a company, registered under the Companies Act, 1956 and engaged in the trade of galvanized steel coils and hot rolled plates. The Insured had a tie up with steel service centre at MIDC Taloja Navi Mumbai and warehouses at various places, including inter alia at MIDC Taloja, Ahmedabad, Chennai, New Panvel, etc.
(b) National Insurance Company Limited (the Insurer) was a public sector corporation and engaged in the business of providing different types of insurance services. The Insured obtained Standard Fire and Special Perils Policy No. 240100/11/15/3300000133 for the period of 28.4.2015 to 27.4.2016, from the Insurer, for sum insured of Rs. 70 crores, on Stock of all kinds of Galvanizes Plain, Galvanized Corrugated, Cold Rolled Coils, Sheets etc. pertaining to Insureds trade, their own, in trust or on commission, lying at various locations as mentioned in the Policy. Present loss related to the location Sri Srinivasa Metal Industries, 3/136, Anna Salai, Andarkuppam, Dadapakkam, Chennai, Tamil Nadu, at Serial No. 11 of the list.
(c) The Insured used to import / purchase Colour Coated Galvanized Steel Coil and store it at the location Sri Srinivasa Metal Industries, 3/136, Anna Salai, Andarkuppam, Dadapakkam, Chennai, Tamil Nadu, from where it is sold / supplied in market. Due to continuous heavy rain in Chennai,warehouse of Sri Srinivas Metal Industries, 3/136, Anna Salai, Andarkuppam, Dada pakkam, Chennai, Tamil Nadu was completely flooded with muddy water on 30.11.2015 at 20:00 hours. The flood water receded till 5.12.2015. The muddy water damaged Pre - painted Galvanized Steel Coil.
(d) The Insured informed the Insurer about incident of inundation at its warehouse and damaged caused by it on 7.12.2015 and preferred insurance claim of Rs. 4,75,00,000. The Insurer appointed Professional Insurance Surveyors & Loss Assessors, Chennai as the surveyor. The surveyor inspected the warehouse on 11.12.2015, made inventory and took photographs. The Insured, with the permission of the surveyor shifted the goods from affected warehouse to another warehouse at 69, Annai Gangaiammal Nagar, Ernavoor, Chennai from 13.12.2015. The surveyor, vide letter dated 15.12.2015, demanded the papers, for assessing loss. The Insured provided all the required documents on 18.12.2015. The surveyor, vide letter dated 26.12.2015, again demanded some more papers, which were supplied on 7.1.2016 and 12.3.2016.
(e) The surveyor vide email dated 2.3.2016, sought for formal permission of the Insured for auction of the damaged colour coated coils by inviting tenders and advertising it, as per CVC Guidelines, as the value of salvage was likely to be more than Rs. 5 lakh. The Insured gave its approval vide email dated 16.3.2016. Due to inordinate delay in settlement of the claim, the Insured made representation before Grievance Redressal Cell on 21.5.2016. The Insured wrote a letter dated 24.5.2016, to the Insurer for updating the stage of settlement. The su