Insurance company told to pay agri firm Rs 4.5 lakh for inundated warehouse
14 Aug, 2014 01:01 PM
 
The forum asked the insurer to pay an interest of 9 per cent per annum to Victory Agri World, the complainant in the case, from June 30, 2007.

A consumer forum on Wednesday directed the United Insurance company to pay Rs 4.49 lakh to an agricultural company, whose warehouse was damaged due to heavy downpour in 2007.

While the insurance company cited weather reports to claim that there wasn’t heavy rainfall on the day the company’s warehouse was inundated, the forum, observed that the defence raised by the insurance company for repudiating the insurance claim “is totally arbitrary and amounts to deficiency in service by the insurance company.”

The forum asked the insurer to pay an interest of 9 per cent per annum to Victory Agri World, the complainant in the case, from June 30, 2007. The complainant alleged that it had subscribed for an insurance policy, starting from June 22 to December 22, 2007, to insure its goods lying in its eight warehouses.

Nine days after the company purchased the insurance policy, it claimed there was heavy deluge and its warehouse located in MIDC, Vashi, was flooded up to 1.5 to 2.5 ft. The agro company also submitted that 6,533 bags of green peas stocked in the warehouse premises were submerged under “dirty and acidic inundating water for several hours.”

The complainant claimed that despite sending legal notices to the insurance company for the past 29 months, the insurance company had, in a letter dated October 9, 2009, repudiated the claim of the complainant “on flimsy grounds”.

In its defence, the insurance company had filed a written statement, which stated that the complaint was bad in law and weather report of the India Meteorological Department revealed that rainfall was heavy on June 24, 2007, and not on June 30, 2007.

The forum highlighted the point in the report which mentioned that, “Roads, highways, rail tracks and airport were flooded due to accumulation of inundating water.”

The forum also relied on newspaper articles published of July 1, 2007, submitted by the complainant, that carried reports of heavy rainfall.
 
Source : The Indian Express
http://indianexpress.com/article/cities/mumbai/insurance-company-told-to-pay-agri-firm-rs-4-5-lakh-for-inundated-warehouse/
 



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