Fire Policy – Multiple reports on cause of fire – Seven suggested “short circuit” & two negligence of the insured – HELD cause of fire is immaterial if the claimant is not the instigator of fire.
Fire Insurance Policy – Seven out of nine reports suggested “short circuit” as cause of fire – HELD cause of fire is immaterial if the claimant is not the instigator of fire.
The insurance policies covered the premises (covered area) and open area at village Veshvi in Tq. Uran District Raigad for custom bonded goods and for covering the risk against fire.
On 14.3.2018, the fire broke out at the insured warehouse.
The Surveyor was appointed by the Insurance Company.
On 15.4.2019, the Surveyor gave the report that the cause of fire was due to the negligence of management in not taking adequate precautions and other aspects.
Multiple reports on cause of fire – Seven reports suggested “short circuit” and two on negligence of the insured.
On 3.10.2018, the claim for total sum of Rs.6,57,55,155/- was raised against three policies.
On consideration of the survey and investigation reports, the Insurer rejected the claim on two grounds that the insured premises were not affected by the fire and that the fire was the result of insured’s negligence.
By the order dated 10.8.2022, the National Consumer Disputes Redressal Commission, partially allowed he consumer complaint and directed the Insurance Company to pay Rs.6,57,55,155/- for fire insurance claim with interest and also customs duty.
HELD that the basis for repudiation is unreasonable. The Surveyor’s report cannot be considered as sacred document and contrary evidence, including investigation report, is subject to rebuttal.
The key question is whether the investigation report is indispensable or if the survey report alone is sufficient, to determine the cause of fire. The Surveyor’s report only relies on the Forensic Examiner. The surveyor report is inconclusive on the aspect of actual cause of fire.
Extent of liability when the cause of fire indeterminable in view of multiple survey reports and suggest different causes.
Surveyor report cannot be relied on for lack of sufficient analysis.
Judgment dated 24.11.2023 in Civil Appeal No.339 of 2022 in New India Assurance Co. Ltd and others Vs. M/s. Mudit Roadways
