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.