Description Date Premium Paid Duration of Policy Sum Insured 1 Standard Fire and Special Perils Policy 17080011170 100000734
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19.06.2017 19.06.2017 to 18.06.2018 Rs. 20 Crores 3 Standard Fire and Special Perils Policy 11140011170 100001014 These insurance policies covered premises of 106750 sq.
During the pendency of the insurance policies, on 14.03.2018, a fire broke out at the insured warehouse. The Jawaharlal Nehru Port Trust’s investigation, conducted by on-site firefighters revealed in their report (09.05.2018) that the probable cause was an electrical short circuit.
Ltd., the Forensic Examiner hired by the Insurance Company, inspected the portion of the fire- affected warehouse and in their report (10.12.2018) stated that combustible materials were stored where the fire occurred but ruled out short circuit as the cause, due to the absence of electrical wiring. Basheer & Associates, appointed by the appellants, concluded in their 11.04.2019 report that fire was due to an electrical short circuit, contradicting the Forensic Examiner’s findings. area of the roof of bonded Warehouse which is custom bonded Warehouse was uncovered, i.e., there were no roof sheets at the time of loss, due to which circumstances affected the building insured or containing the insured property were changed, in such a way which increased the risk of loss or damage by insured perils and; The Survey Numbers of the fire affected Warehouse have not been declared/covered under the Policy. In their subsequent communication (14.12.2019), the following two reasons were stated: 1) The insured premises at Survey No 9/3 was unaffected by the fire, and 2) The fire resulted from the insured’s negligence during roof construction in a secure customs-bonded warehouse with hazardous chemicals. 17080011170100000734 (Standard Fire and Special Perils Policy- Goods Held in Trust) 19 Insurance Company’s letter repudiating the claim with respect insurance policy no. 9 Hissa 3 (9/3) Village Veshvi, Tal-Uran, District – Raigad was insured by the Opposite Party; (ii) What was the cause of fire incident that occurred on 14.03.2018?
Surveyor’s Report (M/s Bhansali & Co.) dated 15.04.2019 (Annexure A-12) was relied upon to further suggest that the fire occurred due to negligence on the part of the insured in not taking adequate precautions during the roof repair work.
Kumar also reads the Surveyor’s Report (M/s Basheer & Associates) dated 11.04.2019 (Annexure A-11) which concluded that the insurance policy did not cover the premises of the fire-affected warehouse. 2,15,18,802.45/- was claimed towards custom duty liability, the appellants argue that compensating the insured warehouse is erroneous as custom duty liability rests only upon the importer under Sections 12 and 46 of the Customs Act, 1962. The learned counsel then submits that it is clear from the Leave & License Agreement dated 04.07.2015 that M/s Platinum Logistics had leased out land situated on Survey No.9/3 in Village – Veshvi, Taluka – Uran, Raigad to the claimant. Therefore, if the sparks from the welding work were the cause of the fire, it would not go un-noticed for 26 minutes since combustible chemicals, papers, etc. In addition, it was also pointed out that no welding took place during the GI sheet roofing work as those would melt during welding. In addition, undertaking obtained from the claimant stating that they would not claim a remission or abatement on the customs duty payable (Annexure R-4) was also placed on record. Thus the alleged loss dogs (sic) not fall within the purview of the policy………… The root cause of the fire incident was due to the negligence on the part of the Management in not taking adequate precautions when the construction work was going on that too in a secured customs bonded warehouse where many hazardous chemicals were stored: The alleged cause of fire is hot (sic) covered under the policy……………” The insurance company in their letter mentioned two specific grounds to repudiate the claim: (i) that the location of fire was part of the premises not covered under the insurance policy, and (ii) that there was negligence on the part of the insured in carrying out repairs at the roof of the warehouse which caused the fire.
, it was declared that new grounds for repudiation cannot be introduced during the hearing if they were not included in the (2016) 14 SCC 161.
His first submission is that the insurance company cannot resist a claim petition on grounds beyond those cited by them while repudiating a claim. [(2019) 19 SCC 70] has been cited.
If the insurer has not taken delay in intimation as a specific ground in letter of repudiation, they cannot do so at the stage of hearing of the consumer complaint before NCDRC.” Canvassing supplementary arguments during the hearing, (beyond those in the insurer’s repudiation letter), is explicitly prohibited. In fact, the policy documents as well as the License issued under Section 57 of Customs Act 1962 refers to the warehouse situated at Survey No 9/3, Village – Veshvi, Gavan Phata, Chirner Road, Opp.
Under any of the following circumstances the insurance ceases to attach as regards the property affected unless the insured, before the occurrence of any loss or damage, obtains the sanction of the Company signified by endorsement upon the policy by or on behalf of the Company:- (a) If the trade or manufacture carried on be altered, or if the nature of the occupation of or other circumstances affecting the building insured or containing the insured property be changed in such a way as to increase the risk of loss or damage by Insured Perils. Clause 3(a) indicates that the insurance policy would cease to be applicable or cover the insured premises in certain cases where there is an increased risk of loss or damage to the insured premises or goods within it. Manager, Jawaharlal Nehru Port Trust’s 09.05.2018
Probable cause of incident reported as Electrical Short Circuit. – M/s Proclaim 31.08.2018
Probable Cause of incident determined as Short Circuit based on the police report & fire brigade. Police Investigation (Not annexed) 11.2018
Case Title: NEW INDIA ASSURANCE CO. LTD. Vs. M/S. MUDIT ROADWAYS
Case Number: C.A. No.-000339 / 2023
