CHENNAI: Asserting that insurance claims relating to commercial activities are still covered under the Consumer Protection Act, a Chennai consumer forum ordered payment of an Rs 11.29 crore insurance claim for the destruction of materials in a fire accident in a private factory at Sriperumbudur, with 6% interest.The Additional District Consumer Disputes Redressal Commission, Chennai (North), comprising D Sathish Kumar, president, P Vinodh Kumar, member, and K Amala, member, also ordered payment of Rs 5 lakh towards deficiency of service and mental agony suffered by Mipalloy Nomura Plating Company LLP, represented by its partner, Sumit Dhody.The commission also ordered Rs 10,000 towards litigation costs. Representing the complainant, advocate Sanjay Pinto submitted that the company insured its plant against fire and perils with Liberty General Insurance Company Ltd for a sum insured of Rs 28 crore.On April 10, 2019, a fire accident occurred at the complainant’s factory in Sriperumbudur. The fire was intimated on the same day, an FIR was registered on April 11, 2019, a preliminary loss report was sent on April 17, 2019, and the claim form was submitted on May 7, 2019, for a claim amount of Rs 19.07 crore, he said. He further pointed out that the cause of the fire, as per the surveyor’s report and forensic report, was accidental due to an electrical short circuit.However, the claim was rejected by the insurer after 937 days, beyond the policy timeline, compelling the complainant to file a writ petition before the HC to obtain documents. Now, alleging deficiency in service, arbitrary repudiation, and violation of policy conditions, the company moved the commission.Opposing the complaint, the insurer contended that the complainant was not a consumer, as the policy was for a commercial enterprise, and alleged gross negligence on the part of the company.Partly allowing the complaint, the commission ordered payment of Rs 11.29 crore, as assessed in the revised survey report dated Oct 12, 2022, with 6% interest from Nov 7, 2024, until realisation.
