Insurance coverage for spontaneous combustion includes claims despite absence of visible fire if an additional premium was paid for coverage.

1. The present Consumer Complaint (CC) has been filed by the Complainant against Opposite Party (OP) as detailed above, inter alia praying for directions to the OP(s) to pay:
(i) the principal sum of Rs.1,60,00,000,
(ii) the interest amounting to a sum of Rs.22,63,000 till the date of filing the instant Complaint calculated at the banker's lending rate of 14.5% per annum and further interest at the same rate till the date of payment by the OP.
(iii) the cost of instant proceedings and
(iv) legal expense in the sum of Rs.11 lakh incurred prior to and upon the institution of the instant proceedings.

2. Notice was issued to the OP. Parties filed Written Statement / Reply, Rejoinder, Evidence by way of an Affidavit and Written Arguments / Synopsis etc. as per details given in the Table at Annexure - A.

3. It is averred / stated in the Complaint that:
(i) The complainant is a private limited company incorporated under the Companies Act. The complainant company is conducting the business, inter alia, of the manufacturing of sugar. The sugar is manufactured from the crushing of sugarcane. During the processing of the sugarcane into sugar, a thick syrupy by - product called molasses is produced. Sugar is crystalized from a concentrated juice in three stages and at each stage crystalized sugar fraction is produced besides the said by - product in the form of non - crystalline fraction or molasses fraction. The said by - product of molasses is stored in large cement storage tanks and is to be later fermented in a distillery in order to yield extra neutral alcohol, rectified spirit and ethanol. The Complainant had taken out the following Insurance Policy:
"STANDARD FIRE AND SPECIAL PERILS POLICY" paying a premium of Rs.40,500 for the sum insured of Rs.5.0 crore and had paid, on the Insurer's demand, further premiums of Rs.7,875 Rs.9,375 and Rs.6,000, thus aggregating a sum of Rs.23,250, on the same insured sum towards "ADD ON COVERS" OF (i) SPONTANEOUS COMBUSTION AND (ii) STFI Cover and (iii) EARTHQUAKE respectively.
(ii) It had been the practice of the OP over the past 20 years to depute its Representative to inspect the building and the plant and machinery and the nature of the goods stored in order to prescribe the most appropriate Standard Fire and Special Perils Policy that the Complainant should take. It is also contended by the Complainant that the OP was apprised of the special phenomenon of internal heating of spontaneous combustion that products like grains, seeds, molasses, etc., were prone to in storage in large quantities. That mindful of the said phenomenon the OP advised a particular kind of Fire and Special Perils Policy and issued the same.
(iii) On 23.4.2018, the complainant bought an Insurance Policy from the OP covering the perils of fire and spontaneous combustion of the goods comprising sugar and molasses stored in its sugar manufacturing factory for Rs.50.00 crores. The period covered under the Policy was 23.4.2018 to 22.4.2019.
(iv) On 6.8.2018 and again on 9.8.2018 there was explosion in the Complainant's molasses tanks Nos. 15 and 6 respectively resulting in short duration fires and an exothermic reaction raising the temperature of the molasses to such high levels that it foamed and frothed and overflowed out the tank burning into charcoal solid material resulting in an estimated loss of Rs.150 lac, as reported in the Complainant's letter dated 9.8.2018. It was also informed vide above said letter to the Insurer / OP that the Complainant feared further damage to the molasses stored in Tank No. 8 as we