MAHENDRA RANGARE Vs. ORIENTAL INSURANCE CO. LTD

JUDGEMENT

(1.) This complaint under Sec. 21 of the Consumer Protection Act, 1986 (in short, the 'Act') is filed by the Partner of the complainant firm engaged in the manufacturing of PP / HDPE laminated fabric and L D agricultural pipes located at 81 Industrial Area, Rao Extension, Indore, M.P against the Opposite Party from whom it had obtained a Standard Fire and Special Perils Policy (SFPPS) (in short, the 'Policy"). Deficiency in service and unfair trade practice is alleged in the repudiation of the loss claimed on account of a fire accident on the insured premises during the validity of the said policy.

(2.) The facts, according to the complainant are that the factory premises which was insured under the Policy (No.151100/11/2011/513) for the period 19/3/2011 to 18/3/2012 for fire and earthquake for a sum of Rs.2,47,15,000.00 each. The risk covered was for plastic goods manufacturing (excluding foam plastics). It also had insurance cover for stock of plastic goods material finished and unfinished goods material and related goods for Rs.1,00,00,000.00, furniture, fixture and fittings for a sum of Rs.40,00,000.00, plant and machineries for Rs.85,00,000.00 other items such as electrical panel, cooling tower, stabilizer, transformer, oil etc. for Rs.21,15,000.00.

(3.) On the night of 31/1/2012, a fire accident occurred on the premises which was controlled by the Fire Brigade after a few hours. The Police and the Opposite Party were informed about the accident on 31/1/2012 and 1/2/2012 respectively. The Complainant stated that the loss due to fire was estimated at Rs.1,70,00,000.00 on account of extensive damage to building, plant and machineries, raw material, finished and semi-finished goods, electrical and electronic goods. A claim of Rs.1,54,66,406.00 was preferred by the Complainant with the Opposite Party. The Opposite Party deputed Mr. Sunil Gupta, Surveyor who submitted a Preliminary Survey Report dtd. 5/2/2012 stating that the cause of the fire appeared to be an electrical short circuit. Thereafter, M/s. R.K. Singhal and Co., New Delhi were appointed as Surveyors, who, after obtaining various documents and information through several queries, submitted a report dtd. 15/11/2012 based on which the Opposite Party concluded that there was violation of policy conditions Nos.1 and 8 and repudiated the claim as a 'No Claim'. The instant complaint challenges this repudiation and is before this Commission seeking compensation of Rs.2,06,66,406.00 with the prayer to direct the opposite party to: