The National Consumer Commission has directed the United India Insurance Co. Ltd. to pay an Andheri-based frozen foods firm Rs16.44 lakh with 6% interest per annum from July 21, 2016 till date of realisation in a case of loss owing to fire in November 2015.
The Commission accepted the surveyor’s report that assessed the loss that was contested by the complainant, but awarded the interest because the firm had not paid the amount assessed by the surveyor.
The order dated Jan 3, 2023 was passed on a complaint by Tate’l Fine Foods Pvt. Ltd. The export firm deals in manufacturing, processing, packaging and storage of frozen snacks, ready to cook / baked food etc. The manufacturing is done at two units; one for ready to eat and two for frozen products.
The firm had taken a ‘Standard Fire’ and ‘Special Perils’ policy for Rs6 crore that was later enhanced to Rs7 crore and it covered loss of goods, stock and material due to fire. It was valid when the fire took place in Nov 2015 in a unit. Intimation was given to the fire brigade, the Karad Municipal Council and the local police. Almost all frozen food and stock was destroyed.
After being informed that certain items were not covered, a claim of Rs1.82 crore was submitted by them in July 2016. When things didn’t resolve after a meeting with the insurance firm, a revised claim of Rs1.72 crore was submitted. However, as per surveyor appointed by the insurance firm, the food company was eligible only for Rs16.44 lakh.
The Commission said that the complainant had not produced any evidence to show that the assessment made by the surveyor was wrong. Even though the amount as assessed by the surveyor was asked to be paid, the Commission observed there was no proof that it was paid. Quoting IRDA guidelines that the claim money should be paid in a month from the final survey report, it directed the amount to be paid in eight weeks.
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