MODERN INSULATORS LIMITED Vs. ORIENTAL INSURANCE COMPANY LIMITED

JUDGEMENT

(1.) This appeal is directed against the order dated 8-1-1997 passed by the National Consumer Disputes Redressal Commission whereby the Commission set aside the order passed by the State Commission of Rajasthan in the appeal filed by the respondent.

(2.) The appellant has a factory wherein it manufactures high tension insulators for transmission lines. The appellant had taken out an insurance policy known as 'All Risk Insurance Policy' for Rs. 50 lakhs for installation of 25 M-3 kiln with furniture. The policy covered risks against loss during storage-cum-erection including trial and testing. After completion of the erection of 25 M-3 kiln, the same was loaded with insulators on 12-7-1988 for trial and testing and when it was opened on 16-7-1988 it was found that complete structure of kiln furniture with insulators had collapsed on kiln car and various items of kiln furniture were damaged. A claim of Rs. 5,73,397.43 was lodged with the respondent and the surveyors assessed the damage at Rs. 4,66,873. As the claim was not settled a complaint was filed before the State Commission alleging negligence on the part of the respondent and claiming the amount assessed by the surveyor with interest.

(3.) The respondent-Insurance Company in the reply to the complaint filed before the State Commission pleaded that damaged property was not covered by the insurance policy. The State Commission after considering the materials on record rejected the plea of the respondent and directed the respondent to indemnify the loss by making payment of Rs. 4,66,873/- with interest @ 18% per annum.