DETAILS DD MM YYYY Date of Judgment 03 05 2023 Date of Filing 02 07 2010 Duration 01 10 12 IN THE STATE CONSUMER DISPUTE REDRESSAL COMMISSION STATE OF GUJARAT COURT -2 CONSUMER COMPLAINT NO. 43 OF 2010 COMPLAINANT: RAINBOW PAPERS LIMITED

801, Avdhesh House, Opp. Guru Govind Gurudwara, S G Highway, Thaltej, Ahmedabad. -54.

V/s.

OPPONENT: CHOLAMANDALAM MS GEN. INSURANCE CO. LTD “Optionz” 2^nd Floor, 18, S P Colony, Opp. Hotel Nest, Off C G Road, Ahmedabad- 9.

CORAM: Hon’ble Mr. R N Mehta, Member Appearance: Mr. C R Kothari, Advocate for Complainant Mr. Sandeep C Shah, Advocate for Opponent.

(Order by Hon’ble Mr. R N Mehta, Member)

[1]. The present complainant has been filed by a public limited company and prayed for direction to the opponent to pay the complainant the sum of Rs. 82,97,446/- towards reimbursement of loss suffered by it on account of machinery breakdown which was insured under the policy issued by the opponent and further prayed for interest @18 % from the date of loss. The complainant also claimed special compensation for alleged hardship, mental agony, harassment due to negligent attitude and indulgence of opponent in Unfair Trade Practice and cost of complaint.

[2]. It is stated in the complaint that the complainant is a Public Limited Company having its manufacturing plant at Survey no. 1453, Village Rajpur, Taluka: Kadi, Kadi-Mehsana Highway, North Gujarat, Pin: 382715. The complainant is engaged in manufacturing of papers of various kind including Map litho, News Print, Duplex Board, Cast Coated paper, Colour Paper, Fluorescent Paper, and Coated papers etc. The complainant company possess costliest machineries for the use of manufacturing activities and to indemnify the loss of accidental breakdown of machinery, insurance policy known as “Machinery Breakdown Insurance” availed from the opponent insurer on payment of necessary premium. The details of insurance policy are mentioned hereunder:

Type of Policy: Machinery Breakdown Insurance.

Policy No. EMB-00001013-000-00 Period: From 9.00 hrs of 21/4/2008 to Midnight of 20/4/2009 Description of Risk: (1). Turbo Generator -1, 5-MW, Turbine, Make: Triveni Engineering, Sr. No. 053, Make-2003 (Sum Insured: Rs.2,50,00,000/-)

(2). Turbo Generator-2, 10-MW, Turbine, Make: Triveni Engineering, Sr No. SCG-3-61 Make-2007 (Sum Insured: Rs. 4,00,00,000/-)

Total Sum Insured: Rs.6,50,00,000/-.

Excess Condition: 0.8 % of sum insured if SI exceeds Rs.2,50,00,000/-.

Premium Paid: Rs. 693823/- (inclusive of Service tax and Edu. Cess.)

[3]. It is stated in the complaint that during the insurance period, on 5/10/2008, at about 1.56 a.m., the operator on duty, inadvertently supplied steam to Turbo Generator -2 (10 MW) from the boiler at the pressure meant for 5 MW turbine (Turbo Generator -1) which caused mechanical breakdown and stopped working and caused serious damage to Rotor of 10MW turbine. This was reported to opponent insurance company and therefore the opponent insurer deputed surveyor M/s. Mehta Padamasy Pvt. Ltd. The surveyor paid visit to the site and verified the loss and called upon the complainant company to provide documents to substantiate the loss. It is stated that this procedure took long time as surveyor had arranged series of tri-party meetings with supplier and complainant. The complainant finally submitted all necessary information to register the claim for loss of Rs. 1,63,72,260/- vide letter dt.22/8/2009 and submitted claim bill on 18/12/2009. However, the complainant then vide letter dated 4/1/2010 requested the opponent insurer to expedite the settlement of claim. However, the opponent insurer vide its letter dated 7/1/2010 communicated to the insured that the claim is not payable since cause of loss is not falling within the scope of the policy. The complainant thereafter, sought services of another IRDA approved licensed surveyor Mr. B G Bhatt & Co. The complainant states that the said surveyor B G Bhatt & Co. also visited site, examined various documents, and studi