LAWS(NCD)-2016-9-141

NATIONAL INSURANCE COMPANY LTD. Vs. EDEN COLD STORAGE

Decided On September 29, 2016
NATIONAL INSURANCE COMPANY LTD. Appellant
V/S
Eden Cold Storage Respondents

JUDGEMENT

(1.) The two Appeals i.e. First Appeal No. 383 of 2009 and First Appeal No. 383 of 2010 have been filed by Insurance Company respondent/(Opposite Party Nos. 1 to 3) and UCO Bank (Opposite party No. 4) respectively against the order dated 13.8.2009 passed in CC No. 2 of 2007. by the State Consumer Disputes Redressal Commission, Assam (in short "the State Commission").

(2.) Brief facts of the case are that M/s. Eden Cold Storage have taken Standard Fire& Special Perils Policy bearing Policy No. 200100/11/05/3100000281 from the appellants/Opposite party Nos. 1 to 3, which was originally for stocks of Rs. 20,00,000. which was subsequently increased by Rs, 1,11,33,000 with effect from 2.5.2006. The loan was taken from the UCO bank (OP-4) and the Insurance Policy was also taken and premium for insurance policy was paid through the bank. On 4.8.2006, there was leakage from pipe carrying ammonia and the potatoes kept in one chamber where fumes of ammonia spread got completely damaged and became unfit for human consumption. The claim was lodged with the Insurance Company, which was repudiated vide their letter dated 20.11.2006 on the ground that as per Clause 6 of the General Exclusions contained in the policy, loss, destruction or damage to the stocks in cold storage caused by the change in temperature was not covered and also the loss had not occurred due to the operation of any of the insured perils as mentioned in the Standard Fire and Special Peril policy.

(3.) The complainant then filed a complaint before the State Commission being complaint No. C.C. 2 of 2007, which was allowed as follows vide its order dated 13.8.2009: