The National Consumer Disputes Redressal Commission, New Delhi, recently directed ICICI Lombard GIC Ltd to settle claim of the complainant by paying a sum of Rs.9,61,90,263/- along with interest @9% p.a. from the date of lodging of the claim till realization within 8 weeks.
ICICI Lombard had issued an All Risk policy to M/s HCC-CPPL JV for tunnelling work under an irrigation project awarded by Government of Andhra Pradesh. The All Risk Insurance Policy for the total cost of Project for 7,35,21,00,000/- was issued for a premium of 2,03,00,000/-.
On 06.06.2011, head of the tunnel under construction collapsed resulting into damage to the Tunnel Boring Machine (TBM) and loss to Insured Contract Works. Immediately the insured intimated the said loss and lodged a claim of 35.70 crores. The insurer appointed M/s. Cunningham Lindsay International Pvt. Ltd., as Surveyor to assess the loss. The surveyor post inspection and consideration of documents, recommended repudiation of the claim on the grounds that no physical loss occurred to the insured property (i.e the constructed part of the project work). The insured however stated that was covered the peril and object in question.
The insured on account appointed an independent surveyor named "M/s. Mehta & Padamsey Surveyors Private Limited", Chennai to assess the loss, who confirmed that the Complainant’s claim is well within the scope of the Policy. Basis the independent surveyors report, insured requested the insurer to pay the claim however the insurer maintained its stand. The insured thereby approached the National Consumer Disputes Redressal Commission (NCRDC), New Delhi.
The insured's lawyer major contentions were
M/s Cunningham Lindsey international (Pt.) Ltd. (appointed by insurer) was neither independent nor impartial as it was the sister Company of Fairfax Financial Holdings Limited which had a substantial interest in Lombard Insurance and it was due to this hidden arrangement, the genuine claim of the Complainant was rejected
It was further submitted Section 64UM of the Insurance Act,1938 the insured had rights to appoint an independent Surveyor. Accordingly, M/s Mehta & Padamsey Surveyors Private limited, Chennai, who conducted a survey at the site and confirmed that the insureds claim was well within the scope
Since TBM was being used for completion of the project work being insure and any damage to TBM impacted the project, its coverage on account is included within the issued policy
NCDRC on noting the available facts opined that the insured’s appointed surveyors report is more authentic and is based on rightful appreciation of terms and conditions mentioned in the policy. The commission thereby awarded the insured with Rs 9,61,90,263/- along with applicable interest towards loss.
Read the entire judgement below:
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