ORDER

1.       The Complainant is a Limited Company engaged in the business of manufacturing and export of pesticide and veterinary products. The Complainant took three Policies from Opposite Party No.1 with the following details: -

          “i.      Policy No.401311/11/09/310000204

                   plant & machinery

                   Sum insured: Rs.1.00 crore

                   Period: 18.08.2009 to 17.08.2010

                   Premium paid: Rs.13,898

          ii.       Policy No.401311/11/09/310000239

                   Stock

                   Sum insured: Rs.1.00 crore

                   Period: 23.11.2009 to 22.11.2010

                   Premium paid: Rs.9927

          iii.      Policy No.401311/11/09/310000292

                   building

                   Sum insured: Rs.70 lakh

                   Period: 28.03.2010 to 27.03.2010

                   Premium paid: Rs.12,197/-”

On 15.06.2010 there was a fire in the factory premises of the Complainant. The incident was reported to the Police and the Insurance Company. By the time the fire brigade could reach the spot, fire spread in the entire building. As the material (pesticides) kept in the factory building was inflammable in nature, the fire was devastating. The fire brigade took 4 hours to control the fire. Officers of the Insurance Company as well as the Surveyor visited the factory premises between 15.06.2010 to 21.06.2010. On 15.06.2010, the Complainant filed a claim for Rs.1,23,91,415/-. The Complainant stated that he supplied the documents demanded by the Surveyor, but they kept on demanding various documents and communicating that the claim could not be settled due to lack of cooperation of the Complainant. The Complainant was made to run from pillar to post for about two years without any reason.  On 05.11.2011 and 09.12.2011, the Complainant lodged a Complaint with IRDA. Thereafter, the Insurance Company informed the Complainant that the claim was pending with them and they were waiting for the reply of the Surveyor. The Complainant issued legal notice dated 28.07.2012 to the Insurance Company demanding claim amount with 9% interest. The Complainant filed an application under Right to Information Act seeking Survey Report and other documents. The Surveyor assessed the net loss at Rs.15,77,928/- under all three Policies. The Surveyor, however, observed that the claim was not payable as the Complainant could not prove the cause of fire.

Though the Surveyor observed that the entire factory suffered damage, he, however, wrongly estimated the net loss to the building at Rs.64,050/-against the claim of Rs.8,00,448/-. The Complainant claimed Rs.28,20,676/- for loss to the plant & machinery. The Surveyor, however, assessed loss at Rs.2,40,900/- on the ground that the Complainant failed to produce any document to substantiate the claim. While assessing the loss to the stock, the Surveyor ignored the claim bills and wrongly assessed the loss at Rs.12,82,978/- against the claim of Rs.90,72,294/-. Alleging deficiency in service on the part of the Opposite Parties, the Complainant filed the present Consumer Complaint with the following prayer:-

“A.    That the respondent is liable to pay the Complainant an amount of Rs.1,26,93,418.00 from the date of loss (i.e. 15.06.2010), till its actual payment/credit at 2% higher than banks prevailing rate of interest as per Insurance Regulatory Authority’s policy holders protection regulation.

B.      That the respondent is liable to pay an amount of Rs.10,00,000/- as mental agony and harassment compensation to the complainant.

C.      That the respondent is also liable to pay cost of litigation to be allowed by this Hon’ble Commission.”

2.       The Complaint was contested by the Opposite Party No.1/Insurance Company by filing written statement. Opposite Party No.1 took preliminary objection that the Complainant was a commercial organization and was involved in commercial activities. It was, therefore, not a Consumer under Section 2 (1) (d) of