Insurance firm to pay over Rs 21 L claim for loss due to fire
03 Jun, 2014 12:12 PM
Delhi State Consumer Commission has asked an insurance firm to pay over Rs 21 lakh as claim to a garment company here for its loss of goods due to fire at its factory in 2006.

The commission's bench, comprising its judicial member S A Siddiqui and member S C Jain, passed the order on a complaint filed by a garment firm, whose goods were insured with the insurance company under its fire policy.

"...Complaint filed by complainant before this Commission is allowed and OP-1 (insurance company) is directed to pay to the complainant an amount of Rs 21,27,173, less Rs 2,59,741 (which had already been paid by the insurance firm to garment company) this remaining amount is to be paid by the insurance company," the commission said.

Bajaj Allianz General Insurance Company Ltd was also asked by the bench to pay Rs one lakh as compensation to the garment firm for mental agony, harassment and inconvenience caused to it.

It held that the insurance company failed to assess loss caused to the complainant genuinely and fairly which was "wrong, whimsical and arbitrary action" on the part of the insurance company and it "certainly amounts to deficiency in service rendered by insurance firm."

The commission also took note of the report confirmed by fire department which had estimated a loss of Rs 35 lakh to the garments firm.

"Once, it has also been confirmed by the fire department also that loss occurred to complainant (garment company) was to tune of Rs 35 lakh then in these circumstances we do not find any reason why the claim of compensation of Rs 22 lakh with interest should not be granted to the complainant," it said.

Delhi-based M M Knitwears Pvt Ltd had filed the complaint with the consumer commission saying it had taken fire policy from the insurance firm in the sum of Rs 2.20 crores on November 7, 2006, for one year.

On December 26, 2006, a fire broke out in the premises of the factory of the garment firm, damaging the quality of the clothes.
Source : Business Standard

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