7 Years After Warehouse Fire, Insurer Told To Pay ₹8.06 Crore To Victorinox India

Mumbai: Seven years after a fire destroyed the customs bonded warehouse of Victorinox India Pvt Ltd, a consumer commission has directed New India Assurance Company to pay more than Rs 8.06 crore after holding that the insurer unfairly rejected the claim on technical grounds.

The District Consumer Disputes Redressal Commission (South Mumbai), in its September 2 order, said the legitimate insurance claim was repudiated in a “mechanical manner” despite the loss being assessed by the insurer-appointed surveyor.

Fire Destroys Warehouse

Victorinox India is a wholly owned subsidiary of Switzerland-based Victorinox AG and distributes travel bags, knives, watches, cutlery and other consumer products in India.

The company had obtained a Standard Fire & Special Perils Policy from New India Assurance.

A major fire broke out at its customs bonded warehouse on February 16, 2019. Staff initially attempted to control the blaze before seeking assistance from Jawaharlal Nehru Port Trust Fire Services.

Despite firefighting efforts, goods stored at the warehouse suffered extensive damage.

Surveyor Assesses Rs 8.06 Crore Loss

The insurer-appointed surveyor inspected the site and assessed the net loss at Rs 8,06,49,573 after examining documents submitted by Victorinox India.

However, New India Assurance repudiated the claim in January 2021, citing non-submission of certain internal agreements and invoices under the policy conditions.

The commission found that email records showed Victorinox India had repeatedly provided documents sought by the surveyor and participated in virtual meetings to address queries.

Repudiation Called Unfair

The panel said that once the surveyor had assessed the fire-related loss and neither party disputed the assessment, rejecting the claim solely over procedural requirements was legally unsustainable.

It held that the insurer had committed deficiency in service and adopted an unfair trade practice.

New India Assurance was directed to pay Rs 8,06,49,573 with 9 per cent interest from the date the complaint was filed.

The insurer must also pay Rs 50,000 for mental distress and Rs 50,000 towards litigation costs within 45 days.