Forum asks insurance firm to compensate pharma company

Sep 06 2013, 01:46 IST
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SummaryThe State Consumer Dispute Redressal Forum has found National Insurance Company deficient in services and slapped a fine of Rs 1 lakh for causing mental agony and harassment to the owners and partners of a Himachal Pradesh pharmaceuticals firm

The State Consumer Dispute Redressal Forum has found National Insurance Company deficient in services and slapped a fine of Rs 1 lakh for causing mental agony and harassment to the owners and partners of a Himachal Pradesh pharmaceuticals firm.

Even after the final settlement of the claim at Rs 43,33,585 in December, 2010 the firm had not received a single penny against the Standard Fire & Special Perils Policy of the company after suffering losses in the floods of September, 2010.

Indo Phyto Pharmaceuticals lost a huge amount of machinery, building etc, to the flood water that had entered the factory and reported a loss of Rs 65-70 lakh to the police. After the survey by the opposite party, the complainant was asked to accept Rs 43,33,585 as the settlement amount. The balance sheet of the pharma firm, however, maintained the loss of stock by flood as Rs 54,25,688. After not getting paid at all even after the above mentioned settlement, Indo Phyto then moved the Forum to seek the claim for their calculated amount of Rs 54,25,688 and Rs 10,00,000 as compensation for unnecessary harassment.

The forum, however, upheld the National Insurance Company’s claim amount but also found them liable to pay the said amount anyhow. The company was found guilty of repudiating the complainant’s claim and was directed to pay it with an interest of 6 per cent per annum. The amount of penalty could however be recovered from the erring officials who did not honour the claim, the forum maintained.

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