Insurance – Fire – Cause – Whether short circuiting or self-combustion.
The appellant has a factory dealing in manufacturing of oil and oil cakes using cotton seeds purchased from ginning and pressing units.
The appellant had taken Standard Fire and Special Perils Policy for 2011 and 2012 for Rs.95 lakhs. In the early hours of 4.6.2011, there was sudden fire in the factory. The officer of the Insurance Company had visited the factory on the same day.
The claim was repudiated on 10.4.2012 on verification of documents and report of surveyor that it was found that the claim was not covered by the policy.
The claimant had to obtain copy of surveyor’s report under RTI. The State Commission rejected the claim on the ground that the probable cause of fire was “spontaneous combustion” as per the investigation report dated 12.12.2011 of Surveyor. The reports of Fire Department, Electrical Inspector and the Police show that the fire was due to short circuiting.
The Surveyor’s report dated 12.12.2011 shows the cause of fire due to spontaneous combustion / self heating not covered by the policy.
There was no fume, no fire, no smoke in the factory and the fire was due to self-spontaneous / heating of cotton seeds.
Order dated 8.4.2024 of the National Consumer Disputes Redressal Commission in First Appeal No.834 of 2015 of Sanjay Foods India Pvt Ltd Jalgaon Vs. United India Insurance Company Ltd and another
