Consumer Protection Act – Insurance Policy of the Company for Standard Fire and Perils is not for a commercial purpose
The appellant – private limited company filed Consumer Case for direction to the Respondent SBI General Insurance Company to idenmnify it for the loss caused by fire insured manufacturing unit of coir foam mattresses, pillows, cushions, etc. It was registered as a small scale industry. It had taken fire policy for Rs.1.25 crores for 2013 to 2014. On 13/14.4.2014, there was massive fire in the unit of the insured. The claim for Rs.3.31 crores was repudiated on the ground of fraud and exaggeration.
The Surveyor submitted the final report dated 11.2.2014, after examining all the documents and the reports of two investigators, that the claim was fraudulent, based on fabricated documents and recommended repudiation of the claim.
The Insurer invoked clause 8 of the General Terms and Conditions of Policy and repudiated the claim vide letter dated 3.3.2014.
The National Commission dismissed the consumer case of the insured-company.
In the appeal of the appellant-insured in the Supreme Court, one of the objections was that the insurance claim was for commercial purpose and therefore, the consumer complaint was not maintainable. This was overruled on the ground that the insurance policy in the present case was taken to cover the risk of fire and special perils (material damage) and these elements only and nothing else. The claim was also for damage caused to the insured premises in the fire accident. The earlier Supreme Court Judgment in Shrikant G. Mantri (2022 (5) SCC 42) and Harsolia Motors case (2023 (8) SCC 362) were distinguished since in those cases the policy was taken for a plain and simple commercial purpose.
Judgment dated 20.3.2024 in Civil Appeal No(s).7966 of 2022 in M/s. Kozyflex Mattresses Private Limited Vs. SBI General Insurance Com[any Ltd and
