Insurance Company Not Liable if Insured Failed to Verify Damaged Material

The bench of the National Commission, comprising Justice C. Viswanath, Presiding Member and Ram Surat Ram Maurya, Member, has observed that only stocks of dal and raw materials were insured wrongly claimed as per the insurance policy loss of machinery and building also. Therefore, the damage was caused to machinery and construction, not to the pulse and recyclables stock.

Commission found that the insured didn’t prove his claim. He neither could show any fully damaged stock nor clarify how massive a level of water can enter the mill.

In this case, the complainant was engaged in the business of running the dal mill. The Insured got Standard Fire and Special Perils Policy from the National Insurance Company Limited . There was a heavy storm with rain, because of which, the southern wall of mill premises collapsed, and wall structures of other two sides cracked. As a result, the machinery, building materials and recyclables kept in the mill became useless. The contrary parties held the claim of the complainant pending till the date.


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