SUNDARAM STEELS PVT LTD THROUGH MOHIT JAIN Vs. UNIVERSAL GENERAL INSURANCE CO LTD & 2 ORS; ASHWINI GABA CLAIM HEAD, UNIVERSAL SOMPO GENEARL INSURANCE CO LTD; UNIVERSAL SOMPO GENERAL INSUANCE CO LTD UNIVERSAL SAMPO GENERAL INSURANCE CO LTD

JUDGEMENT

(1.) The complainant company which is engaged in the business of converting iron ore into sponge iron, obtained a Standard Fire and Special Perils Policy from the opposite party interalia in respect of the building, factory shed, stock of raw-material, finished goods and semi-finished goods, stock of coal as well as the plant and machinery of its factory at B-7, Phase-III, Balidih Industrial Area, Bokaro, Jharkhand. The stock was insured to the extent of Rs.10 crores, including insurance of coal to the extent of Rs.2 crores. The case of the complainant is that on 13.10.2013, water entered its factory premises due to heavy rains resulting from cyclone Phailin, thereby severally damaging the civil structure as well as the stock of coal and iron fines kept in the factory premises. On intimation being given to the insurer, M/s Cunningham Lindsey International Pvt. Ltd. was appointed as the surveyor to assess the loss to the complainant. The loss was assessed by the surveyor at Rs.2689570/-. The aforesaid amount was offered to the complainant but was not accepted by it. Being aggrieved from the refusal of the OP to pay its claim, the complainant is before this Commission seeking payment of Rs.22286150/- along with interest @ 18% p.a. and compensation quantified at Rs.25 lakhs.

(2.) As far as loss on account of damage to the building is concerned, the surveyor assessed the same at Rs.739282/-, which is acceptable to the complainant. I, therefore, need not go into the claim with respect to damage to the building.

(3.) As far as loss on account of damage to the stock is concerned, the case of the complainant is that there was loss of the stock of coal as well as the stock of iron ore fines. The main dispute between the parties is as regards the quantity of coal and iron ore fines which was lost due to floods and rains. The rate applied by the surveyor for the coal and iron ore fines is acceptable to the complainant.