ORIENTAL INSURANCE CO LTD Vs. MODERN INSULATORS LTD

JUDGEMENT

(1.) THIS Appeal has been filed against the order dated 5.7.93 passed by the Rajasthan Consumer Disputes Redressal Commission in Case No. 138 / 92. The opposite party before the State Commission is appellant before us.

(2.) FACTS of the case as available from the records may be briefly stated. The complainant, a manufacturer of high tension insulators for transmission lines, had taken an "Erection all risks" policy for imported and indigenous machinery and equipment for installation of 25 kiln with furniture valuing approximately Rs. 50 lakhs; of this, the value of insurance of the kiln furniture was Rs. 15 lakhs. The policy covered inter -alia risks during storage -cum -erection including trial and testing. After completing the erection of 25 M3 kiln. the same was loaded with insulators on 12.7.88 for trial and testing. After fire cycles and cooling when it was opened on 16.7.88 it was found that complete structure of kiln furniture with insulators had collapsed on kiln car and various items of kiln furniture were damaged. The complainant informed the opposite party telegraphically about the loss assessed at Rs. 5,73,397.43 and also lodged its claim. The opposite party appointed M/s. J.S. Anchalia and M/s. K.D. Kolhi & Co. as Surveyors to assess the loss. Shri Anchalia who visited the site on 20.7.88 and 21.7.88 came to the conclusion that as the complainant in the process of testing had used old and used furniture which could have contributed to the breakdown of the machinery and as the present policy did not cover risk of testing with used machinery/equipment, the loss was not covered. He submitted his report in August, 1988. The latter Company who visited the site subsequently assessed the loss at Rs. 4,66,873 / - taking that 50 percent of the furniture used in the trial run was old and that at least 30 percent of its life has been utilised. They submitted their report in October, 1988. But the opposite party did not settle the claim till May, 1991 when they wrote to the complainant repudiating the claim. The complainant, therefore, filed a complaint before the State Commission, therefore, alleging negligence on the part of the opposite party and praying that the opposite party be directed to pay Rs. 4,66,873/ - towards loss suffered with interest @ 21% per annum as well as damages from the date of loss till realisation.

(3.) THE State Commission observed on the basis of reports of the two Surveyors that the equipment involved in the loss was covered under the policy and directed the opposite party to pay Rs. 4,66,873/ - alongwith interest @ 18% from 12.1.89 till payment.