NCDRC – Surveyor Reports Prevails – Insurer directed to pay Rs.1.73 crores to SKS Ispat for breakdown of 25 MVK Turbo Generator Set.

The complainant had taken Fire Industrial All Risk Policy for the insured sum of Rs.540 crores for the buildings, plant, machinery, electrical items and breakdown machinery.

Flash over the incident for the loss in the Turbo Generator Set.

Surveyor & Expert Reports – Multiple Reports including BHEL technical report and independent expert opinion confirmed the damage of heavy flashing incident loss of TG Set was accidental and covered by the policy.

Delay – The Claim was pending nearly for three years despite clear surveyor assessments.  The prolonged delay and arbitrary repudiation amounted to “deficiency in service”

On 14.3.2014, while the power plant was in operation, the loss occurred due to heavy flashing in the 25 MVA Turbo Generator Set.

The Surveyor appointed by the Insurer made spot inspection on 24.3.2013 and submitted preliminary report on breakdown of the unit and stator earth fault.

BHEL had proposed repair and rewinding of the stator and rotor. Subsequently, it had advised replacement of the stator.

The technical team of the complaint reported dislocation of a core strip causing puncture of stator coil insulation.

Judgment dated 18.3.2026 of the National Consumer Disputes Redressal Commission at New Delhi in Consumer Complaint NO.396 of 2018 of M/s. SKS Ispat and Power Ltd  Vs.  The Oriental Insurance Co. Ltd