SUDHAKAR TRADERS Vs. NATIONAL INSURANCE CO LTD

JUDGEMENT

(1.) IT is the say of the complainant that it is a general merchant dealing in edible oils, like groundnut oil and pulses. They are also the owners of the Oil Mills which were involved in fire accident on 6.8.93. The Complainant has purchased the oil mill machinery with the financial assistance from Andhra Pradesh State Finance Corporation, Ongole, and has also availed the working capital from it. The complainant has been taking insurance policies since 1989 and he has taken the following policies for the relevant period:- Undisputedly the Complainant is dealing in oil seeds and husk and both are highly inflammable articles for which Insurance premium is also higher. It is contended that during this period of four to five years at no point of time Complainant has lodged any claim for the damages even though he has paid large amount of premium.

(2.) IT is also contended that trading in oil and oilseeds is seasonal and depends upon the groundnut crops available and the other market conditions. In the State of Andhra Pradesh months of March to August are considered to be the months for groundnut, oilseeds, oil and for extraction of groundnut oil. For the relevant period the Complainant purchased large quantity of groundnut seeds and chilies and groundnut oil was being extracted by working on three shifts i.e. to say for day and night. The proprietor of the factory, the complainant, was informed on 6.8.93 at about 7.00 A.M. that there was a fire in the factory premises. The information was given by the persons residing in the neighbourhood. It is contended by the Complainant that:

(3.) AS per the insured's narration, this fire was attributed to electrical sparking which had then spread to the stocks and thereafter engulfed the entire building, plant and machinery and stocks placed inside the building. 4.2 We have examined the premises carefully to identify the cause of fire. Our observations are as under:-