Insurance claims are contingent upon strict compliance with policy warranties; breaches may result in denial of coverage.

1. Heard Mr. Sidhartha Sharma, Advocate, for the complainant, Mr. D. Varadarajan, Advocate, for opposite party - 1 and Mr. Satyam Khare, Advocate, for opposite party - 2.

2. Bake Bihari Agrotech Projects Private Limited (the Insured) has filed above complaint for setting aside repudiation letters dated 20.7.2018 and 21.7.2018 and directing Universal Sompo General Insurance Company Limited (the Insurer) to pay (i) Rs. 3,73,46,250 with interest @ 18% per annum from the date of loss till actual payment, as insurance claim; (ii) the cost of litigation; and (iii) 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 attached with the complaint are as follows:
(a) Bake Bihari Agrotech Projects Private Limited (the Insured) was a company, registered under the Companies Act, 1956 and engaged in operating rice mill plants and dealing in fine quality of rice, paddy and rice bran etc. The Insured had its rice mill at village Kasturia, post office Tulshihata, P.S. Harischandrapur, district Malda. The Insured took financial assistances viz. term loan and cash credit facility from Allahabad Bank (opposite party - 2) and the rice mill, plant & machinery and goods were mortgaged / hypothecated with it. Besides milling the rice from the paddy purchased from the grower / market, the Insured used to mill the rice of Food Corporation of India, Food & Civil Supply Department of State Government and other Co - operative Societies.
(b) Universal Sompo General Insurance Company Limited (the Insurer) was a joint venture Insurance Company of Allahabad Bank, Indian Overseas Bank, Karnataka Bank Ltd, Dabur Investment Corporation and Sompo Japan Niponkoa Insurance Inc. and engaged in the business of providing different types of insurance services. The Insured obtained Standard Fire and Special Perils Policy No. 2114/54642411/02/000 for the period of 24.12.2016 to 23.12.2017, from the Insurer, for sum insured of Rs. 12.79 crores, (i.e. Rs. 2.22 crores, on building including plinth & foundation, Rs. 3.94 crores, on plant & machinery, Rs. 59 lacs, on electrical equipment / fittings, Rs. 4 lacs on furniture, fixtures & fittings and Rs. 6 crore, on stock of paddy, rice, husk and packing materials), lying at above location of rice mill. This was a renewal policy. The Insured also obtained Burglary Policy No. 2913/54642411/02/000 for the period of 24.12.2016 to 23.12.2017, from the Insurer, for sum insured of Rs. 9.94 crores,
(c) Due to continuous heavy down pour, release of excess water from Negal and breach of the dam constructed on Mahanadi near Ajamnagar, Dabout, Bihar, the water level in all around of village Kasturia, post office Tulshihata, P.S. Harischandrapur, district Malda started rising from 17.8.2017 and entire area was sub-merged in the water. Flood water started entering the mill premises at about 14.00 hours and water level became about 1.5 to 2 foot in height till evening of 17.8.2017 and later on about 4 to 4.5 foot in height. The water remained accumulated in the mill premises of the Insured and surrounding area for four days and started receding from evening of 21.8.2017. Flood water damaged machinery, stock of paddy, rice, husk and packing materials stored at the mill premises of the Insured. In this flood, more than 50 villages were washed away due to erosion hitting those areas. Five blocks around the mill were inundated in flood water and roads up to mill were blocked. River Ganga was flowing at 25.34 meters level and river Fulahar was flowing at 26.08 meters level, during this period, while extreme danger level was 25.3