Insurance firm told to pay Rs 25 lakh to shop-ownerhttps://indianexpress.com/article/cities/mumbai/insurance-firm-told-to-pay-rs-25-lakh-to-shopowner/

Insurance firm told to pay Rs 25 lakh to shop-owner

It also asked state-owned New India Assurance Company to pay 12 per cent interest since 2006 and an additional Rs 25,000,increasing the compensation amount to Rs 43.32 lakh.

Maharashtra State Consumer Disputes Redressal Commission (MSCDRC) has ordered an insurance company to pay Rs 25 lakh to a confectionery packaging shop for wrongly repudiating a claim after it accidentally caught fire.

It also asked state-owned New India Assurance Company to pay 12 per cent interest since 2006 and an additional Rs 25,000,increasing the compensation amount to Rs 43.32 lakh.

A fire broke out at Drolia Confectionery Packaging in Vasai in November 2004,damaging the building,machinery and stock.

The shop insurace policy covered all risks and its owners staked a claim for Rs 38 lakh — Rs 7 lakh for damage to building structure,Rs 13 lakh for plant machinery,Rs 2.5 lakh for furniture,fixtures and fittings and Rs15.5 lakh for stock.

The insurance company appointed a surveyor and received a report but delayed honouring the claim.