Insurance Policy for the thermal power plant – Initial Report of Insurer Surveyor Vs. Subsequent Report of Independent Surveyor and subsequent addendum report of Insurer Surveyor
The petitioner no.1 had taken All Risk Insurance Policy from the Respondent for Rs.73,56,36,46,295/-.
In August, 2017, sudden vibration was observed in the machinery. As per the advice of BHEL, in August, 2018, the unit was shut down for inspection. It was found that the generator rotor was damaged and same was noted in the minutes of the meeting held on 19.8.2018.
The petitioner no.1 lodged the insurance claim with the Insurer.
Initially, the Surveyor of the Insurer opined that the loss was not admissible under the policy. The petitioners objected the said report, obtained Two Root Cause Analysis Reports and requested the Insurer to revisit its stand.
Insurer appointed independent agency which submitted its report dated 25.10.2019 that the incident was sudden and accidental. Thereafter, the Surveyor of the Insurer submitted addendum report and removed the under-insurance.
However, the Insurer repudiated the claim on 24.1.2022 on the basis of earlier first Surveyor Report.
HELD that there was non-application of mind by the Insurance Company in repudiating the detailed expert report which was also accepted by its Surveyor. Reliance on the earlier Surveyor report was without authority since the Insurer had in fact repudiated the same by appointing an independent agency. Moreover, the Surveyor gave addendum survey report on 15.9.2021 and removed the under-insurance applied in the earlier report. There was no reason and scope for the Insurer to resile from the said position after independent and addendum reports.
Judgment dated 29.1.2024 in W.P.No.2532 of 2022 of The West Bengal Power Development Corporation Limited and another Vs. The New India Assurance Company Limited.
