NCDRC rejects cold storage's 40 L insurance claim

The apex consumer commission has rejected a cold storage owner's plea for insurance claim of over Rs 40 lakh for damage caused to potatoes while condemning the "general" practice by people of not taking care of insured goods.
National Consumer Disputes Redressal Commission (NCDRC) bench made the observation while rejecting a complaint filed by Uttar Pradesh-based Jaiswal Cold Storage and Ice Factory against the New India Assurance Company Ltd seeking insurance claim of Rs 40,20,000 for the damage caused to potatoes due to breakdown of compressor of the plant and erratic power supply by the UP State Electricity Board (UPSEB).

"...Incident occurred due to negligence, inaction and passivity on the part of the complainant itself. It cannot pass the buck on the other side. One is required to be vigilant and act prudently.
"The general feeling of people that they do not care for the goods because that they are insured, is hereby condemned," the NCDRC bench presided by Justice J M Malik said.
The bench noted that the preliminary surveyor, appointed by insurance company, had reported that there was gross violation of terms and conditions of the policies and lack of basic maintenance.
The surveyor had also reported that there was lack of procedure and precaution in running the refrigeration plant and the delayed intimation had led to deterioration of stocks.

"...The log-book confirms that during the periods of load shedding, the DG Set was not run. Temperature fluctuations of this type will cause sprouting and excessive shrinking. This clearly goes to show that there was bad maintenance," the bench said.
It noted that as per the policy, insurance cover did not include load shedding or rationing of supply by authorities or even erratic power supply.
The complainant had told the commission that it had obtained an insurance policy from the company for storing of potatoes in its plant, effective from April 15, 1996 to November 14, 1996, and the total sum assured was Rs 56,25,000.