NARSINGH ISPAT LTD. Vs. ORIENTAL INSURANCE CO. LTD.

JUDGEMENT

(1.) M/s. Narsingh Ispat Ltd. has filed the instant complaint against the opposite party Insurance Company alleging that complainant purchased a Standard File and Special Peril Policy from the opposite party Insurance Company. The period of insurance was 28.6.2009 to 27.6.2010 and sum assured was rupees twenty six crores. The insurance policy covered the risk including fire, riot, malicious damage and allied perils.

(2.) That on the night of 27th Jan., 2009, a group of miscreants broke into the factory premises and threatened the executives that they should convey message to the owner of the factory that if they want to run the factory without any trouble, they would have to pay protection money in cash on regular basis and give employment to few villagers. The insured lodged FIR in this regard with the concerned PS on 28.1.2010 under Sections 323,373 read with Sec. 120-B, IPC.

(3.) That on the night intervening 22nd and 23rd March, 2010 at around 12.30 in the night, about 120 miscreants armed with weapon entered into the factory premises through the back door of the factory and vandalized the factory resulting in huge damage to the extent of Rs. 2,50,00,000. FIR in this regard was lodged with the PS Sarai Killa on 23.3.2010 being FIR No. 16 of 2010. The intimation was also given to the Insurance Company and insurance claim was filed. The Insurance Company appointed one Mr. Mitra as surveyor who after the survey submitted a final report assessing the damage caused to the insured in the incident to the extent of Rs. 89,43,4.22. Surveyor, however, recommended repudiation of the claim on the ground that loss was caused on account of terrorist attack and as such claim was not payable in view of exclusion clause of the insurance contract.