NEW INDIA ASSURANCE COMPANY Vs. ABHISHEK COLD STORAGE

JUDGEMENT

(1.) The Appellant filed the instant Appeal under Sec. 15 of the Consumer Protection Act, 1986 ("the Act"), against the Order dtd. 19/8/2014 passed by the learned State Consumer Disputes Redressal Commission, Lucknow ("State Commission") in CC No. 58 of 2010, wherein the State Commission partly allowed the Complaint.

(2.) As per report of the Registry, there is a delay of 38 days in filing the present Appeal. For the reasons stated in IA/1167/2014, the delay is condoned. For convenience, the parties in the present matter are being referred to as per position held in the Consumer Complaint.

(3.) Brief facts of the case, as per the complainant, are that they placed their consignments of 60,543 bags and 41,880 bags of potatoes were placed in cold storage and insured by New India Assurance Company Ltd., located at Jail Road, Raibareli. The insurance coverage was for Rs.90,00,000.00 vide Policy No. 422002/44/08/51/ 30000008, which remained valid from 15/4/2008, to 14/11/2008. The policy premium of Rs.50,400.00 was duly paid in full. Prior to issuing the insurance policy, authorized personnel from the insurance company conducted a thorough pre-inspection and proper survey of the cold storage facility. Following this comprehensive assessment and upon complete satisfaction with the facility's conditions, the insurance company proceeded to issue the policy. On 10/9/2008, a short circuit was detected in Chamber II of the Cold Storage facility, necessitating the opening of the chamber door to eliminate the accumulated foul odor and allow fresh air circulation. The power supply in District Raibareli is known for significant deficiencies, frequently experiencing interruptions due to tripping that typically persist for extended periods. This pattern of power irregularity continued all along September 2008, prompting formal written complaints to Uttar Pradesh Power Corporation Ltd (UPPCL) on 12/9/2008, 17/9/2008, 18/9/2008 and on 22/9/2008 the operations were significantly compromised due to complete electricity failure. On 19/9/2008, their Kirloskar generator experienced a breakdown caused by water pump failure. On the same evening, a severe storm struck the area, resulting in extended power outage persisted until 22/9/2008. Due to this, the temperature in Chamber II of the cold storage facility could not be properly maintained, resulting in the deterioration of 31,609 bags of potatoes valued at Rs.27,81,592..00They promptly filed a claim with the insurer and provided all documents. While a survey was conducted, the claim was rejected by OP-2 vide letter dtd. 27/5/2009, without specifying any reason. After multiple letters to insurer requesting clarifications, the OP finally disclosed reasons vide letter dtd. 19/6/2009 and the complaint was filed.