Insurance companies cannot repudiate claims without substantial evidence proving defects in design or construction as supported by independent expert evaluations.

1. The present Consumer Complaint has been filed by the Complainants, i.e. M/s Hyundai Engineering and Construction Co. Ltd. and M/s Gammon India Limited (hereinafter collectively to be referred to as the "Complainants") against the Opposite Parties, i.e. M/s United India Insurance Co. Ltd. (Head Office at Chennai), Opposite Party No.1, M/s United India Insurance Co. Ltd. (Divisional Office at Mylapore, Chennai), Opposite Party No.2 (hereinafter collectively to be referred to as "the Insurance Company") and National Highway Authority of India, Proforma Opposite Party (hereinafter to be referred to as the "NHAI"), alleging deficiency of services and unfair trade practices on their part in repudiation of the claim lodged by the Complainants on account of loss occurred due to collapse of certain part of the bridge.

2. The brief facts of the case as culled out from the Complaint are that the Complainants Companies, a Joint Venture are engaged in the business of engineering and construction of various Projects awarded by different Authorities within India. The NHAI is a nodal agency responsible for management of network of highways in the Country.

3. On 26.9.2006, NHAI awarded a contract for the Design, Construction and Maintenance of a Cable Stayed Bridge across river Chambal on NH 76 at Kota, Rajasthan (hereinafter to be referred to as "the Project") to the Joint Venture of Complainant No. 1 & 2. The value of the entire Project Work was Rs.213,58,76,000. Accordingly, a Contractor's All Risk Insurance Policy (hereinafter to be referred as the CAR Policy), bearing No. 011900/44/07/03/60000001 was obtained from the Opposite Parties - Insurance Company on 5.12.2007 for a sum of Rs.213,58,76,000 covering the entire Contract and interest of both the Complainants, i.e. wherein NHAI / Respondent No.3 was the Principal and Claimant No. 1 & 2 were Contractors. The NHAI also awarded the work of consultancy services for design, construction and maintenance of the Cable Bridge to the Joint Venture of M/s. Louis Berger Group Inc. (USA) and M/s. COWI A/s (Denmark). The construction work of the Bridge was required to be completed within a period of 40 months and thereafter the Bridge was to be maintained by the Complainants for a period of six years including two years Defect Notification Period.

4. The construction work of the Bridge was started in December 2007 and till December, 2009, 57.9% of the work was completed. Unfortunately on 24.12.2009, an accident occurred on the Project Site when a part of the under construction Bridge suddenly collapsed which resulted in death of 48 workmen including 3 Engineers of the Complainants. The Insurance Company was informed about the accident by email dated 29.12.2009 by the Principal Insured NHAI. Upon intimation, the Insurance Company appointed the Surveyor, Mr. S. Anantha Padmanabhan as its Surveyor to assess the losses / damages. The Surveyor vide Letter dated 6.1.2010 sought certain details / facts from the Complainants. In response to the said Letter, Complainants furnished all the necessary details to the Surveyor along with copies of supporting documents and total Final Detailed Claim Statement for Rs.151,59,94,542 to him.

5. On 26.12.2009, a Committee of Experts was constituted by the Ministry of Road Transport and Highways, New Delhi to investigate the causes of collapse of the under - construction cable stayed Bridge across river Chambal, how