Businesses can claim cover under consumer rules

The National Commission overruled the maintainability objection on the interpretation of the law laid down by the Supreme Court that insurance is for indemnification, not for commercial purpose

Shree Cement, a limited company, had installed a heavy roller press for crushing and grinding raw material required in the manufacture of cement. The roller was insured for Rs 114,87,28,000 under an Industrial All Risk Policy issued by Oriental Insurance. It covered the risk of fire, machinery breakdown and ‘Fire Loss of Profit’.

On May 22, 2007, one of the insured’s engineers noticed an abnormal sound from the fixed roller. The machine was stopped. On inspection, it was observed that there was clinker powder on the side of the roller and also water leakage from the sealed area. After cleaning, cracks