KASARGOD POWER CORPORATION LTD Vs. ORIENTAL INSURANCE COMPANY LTD SECUNDERABAD

JUDGEMENT

(1.) The complaints are filed u/s 17 of C.P. Act seeking direction to the opposite party, M/s oriental Insurance Company Limited Secunderabad to pay a sum of Rs.69,91,919/- and Rs.68,89,623/- with interest @ 18% per annum, an amount of Rs.one lakh towards compensation and Rs.25,000/- towards costs. As the facts and circumstances and the grounds of repudiation of the claims are similar in nature, both the complaints are being disposed of by a common order. C.C.No.46 of 2008 is taken as the lead case for the sake of discussion.

(2.) The averments of the complaint are that the complainant, a public limited company was incorporated under Indian Companies Act with the main objective to install power projects to generate electricity. The complainant installed one of their projects at Bare Village, Kasargod District Kerala. The complainant has got insured the plant and machinery accessories and electrical, furniture, fixtures and fittings etc with the opposite party vide industrial all risks insurance policy bearing No.431800/IAR/1001 for Rs.103,27,89,500/- for the period from 21.4.2004 to 20.4.2005. The complainant has paid premium an amount of Rs.36,53,238/-. The policy was renewed periodically for the said insurance amount. The complainant entered into operation and maintenance agreement with M/s Caterpillar India Private Limited Chennai for the purpose of maintenance of the power project as plant operator. M/s Caterpillar India Private Limited is the manufacturer of the plant and machinery. The policy was renewed for the third year from 21.4.2006 to 20.4.2007 for a sum of Rs.100,51,29,500/-. The complainant paid an amount of Rs.31,74,059/- towards premium for material damage and Rs.3,70,854/- towards business interruptions. On 5.3.2007 there was a breakdown in the plant and machinery. B2 cylinder head and B Bank Turbo Charger got damaged. The complainant submitted claim which was registered as claim no.F/2007/08 under IAR policy no.IAR/2007/29. The value of the parts damaged and the value of the spare parts required was estimated by the complainant at Rs.69,91,919/-.

(3.) M/s Caterpillar Commercial Private Limited submitted a report stating that the damaged spares were required. On 26.4.2007 the complainant furnished all the necessary documents to the opposite party. On 12.9.2007 the complainant submitted representation to the opposite party to settle the claim along with the earlier claim pertaining to breakdown dated 28.11.2006. The IAR policy was renewed for a further period of 12 months from 21.4.2007 to 20.4.2008 for the amount of Rs.101,51,29,500/-. The opposite party issued policy bearing No.431301/IAR/2008/40. Another breakdown of the plant occurred on 17.5.2007. A-1 Cylinder and A Bank Turbo Charger got damaged for which a separate claim was lodged and registered by the opposite party as claim no.F/2008/02 under IAR policy No.IAR/2008/40. The opposite party has not settled the claim. On 24.10.2007 the complainant submitted another representation to settle the claim. On 30.1.2007, 11.3.2008 and 22.4.2008 the complainant had sent reminders to the opposite party to settle the claim.