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Oriental Insurance Company asked to pay 1 cr claim for loss

The apex consumer commission has directed an insurance company to pay around Rs one crore claim to three firms, which were insured with it, for their loss caused due to fire in their garments unit in Tripura in 1998.

The National Consumer Disputes Redressal Commission (NCDRC) asked the Oriental Insurance Company Ltd to pay a total of Rs 98,02,863 as claim to Tripura-based firms Sri Priyaluckshmi Garments, Sri Priyaluckshmi Exports and Sri Priyaluckshmi Apparels.

"We direct the opposite parties (insurance company) to pay the complainants (three firms) Rs 98,02,863 (a sum of Rs 74,69,331, Rs 14,25,073 and Rs 9,08,459 respectively)," the bench presided by Justice J M Malik said, adding the amount would be paid with interest from the date of the incident in 1998.

The bench, also comprising member S M Kantikar, directed the insurance company to pay a compensation of Rs five lakh to the three firms.

The bench passed the order on a complaint jointly filed by the three firms against New Delhi and Tripura branches of the insurance company and its Coimbatore-based Divisional Manager.

The garments firms said they had obtained six insurance policies against fire from the insurance company.

The firms told the Commission that on February 21, 1998, a fire had broken out in their factory premises in Tripura, the reason for which was suspected to be an electric short circuit. The firms had claimed a loss of around Rs three crore.

The insurance company was also informed about the mishap, the firms said, adding that after doing surveys over a period of a year, the insurance company had put the blame for the mishap on the complainants.

The insurance company and its officials claimed the firms had failed to produce the documents as required by them and the delay was delay was caused by the companies. It also alleged the fire was not accidental.

Article referred: http://www.business-standard.com/article/companies/oriental-insurance-company-asked-to-pay-1-cr-claim-for-loss-114051401165_1.html

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