INDIAN METALS AND FERRO ALLOYS LIMITED Vs. ORIENTAL INSURANCE CO. LTD.
ORISSA STATE CONSUMER DISPUTE REDRESSAL COMMISSION
INDIAN METALS AND FERRO ALLOYS LIMITED
ORIENTAL INSURANCE CO. LTD.
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(1.) MR . Justice R.K. Patra, President -This complaint was filed by the Indian Charge Chrome Limited. It has amalgamated and merged itself with the Indian Metals and Ferro Alloys Limited. In view of this, Indian Metals and Ferro Alloys Limited stands substituted in place of Indian Charge Chrome Limited as complainant.
(2.) THE validity of repudiation of claim communicated by the opposite parties in letter dated 1.5.2002 is under challenge in this complaint.
(3.) THE complainant is engaged in generation of power for its captive use and in manufacturing of charge chrome for export purpose. Coal is the main raw material for the power plant. For this purpose, it keeps coal in large quantity in its stock -yard for day -to -day use as raw material. It had taken a 'Standard Fire and Special Perils Policy (Material Damage)' from the opposite parties in respect of coal and coke in open. The stock of coal and coke is against the risk of fire, flood, etc. including the risk of fire due to 'spontaneous combustion.' The sum assured was Rs. 4 crores. The insurance coverage was for the period from 30.8.2000 to 29.8.2001. On 15.11.2000 at about 7 a.m. fire broke out in 'C' zone and 'D' zone of the yard of the complainant. As a result, the entire stock of coal was burnt. Claim was lodged with the opposite parties for indemnification, but it was repudiated on the ground the complainant did not submit the fire brigade report. The opposite parties in the written version reiterated the aforesaid ground of repudiation.
The opposite parties deputed K.C. Mohapatra, Surveyor and loss assessor, to assess the loss. He inspected the site on 16.11.2000 and 17.11.2000 and submitted his report. In his report, he has indicated that proximate cause of fire was spontaneous combustion. There is no dispute that the insurance policy covers the peril of spontaneous combustion. It is an admitted fact that the complainant has got its own fire tenders. Immediately after being informed by the security staff sprinklers and pay -loaders pressed into the service to extinguish the fire.;
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