UNITED INDIA INSURANCE CO. LTD. vs DAMODAR COLD STORAGE

HEARD the learned Counsel for the parties.

THIS appeal is filed against the judgment and order dated 29th June, 1998 passed by the State Consumers Disputes Redressal Commission, West Bengal, in S.C. Case No. 110/98. By the impugned order, the State Commission directed the Insurance Company to pay an amount of Rs. 14,41,411 with 12% interest p.a. from 7.6.1988 till the date of payment. Learned Counsel appearing on behalf of the Insurance Company submitted that the order passed by the State Commission is against the terms of the insurance policy. He specifically submitted that electric power failure/ interruption cannot be termed as accidental and, therefore, the order passed by the State Commission is on the face of it erroneous.

IN the present case, it is not disputed that complainant has taken the insurance policy for the period covering 8.41987 to 7.4.1988 to cover the risk of loss and damage of potatoes stored in its cold storage. The insurance cover was for a sum of Rs. 5 lakh. It is also admitted that an additional premium for a sum of Rs. 12,960 was taken and an endorsement to cover the losses arising out of accidental failure of public electric supply was given. The relevant portion of the endorsement is as under: "Endorsement to cover losses'' arising out of accidental failure of public electric supply� Attached to and forming part of refrigeration plant (stocks) Policy No. 307/37/1/00005/87 (1) In consideration of payment of an additional premium of Rs. 12,960 it is hereby declared and agreed that this insurance is extended to cover damage to the potato stocks as a result of rise in temperature in the cold storage chambers arising out of accidental failure of electric supply at the terminal ends of the electricity service feeders at the said premises directly due to sudden and unforeseen damage to property at a power station, receiving station, sub-station or other part of the electricity distribution system of public electricity supply undertaking from which insured obtains electric supply."

ON record, the complainant has produced a letter dated 17.4.1989 from the Divisional Engineer, Hooghli, South Division, which is as under: "Dear sirs, With reference to above, kindly be intimated that, in overhead distribution system, it is natural that interruption of electric power supply can take place due to load-shedding of fire faults. It is more so quite natural that interruption in power supply to your cold storage also, might have taken place for the similar reasons."

From the aforesaid facts, it is apparent that the damage to the potatoes was because of failure of the continuous supply of electricity. However, learned Counsel for the Insurance Company submitted that such failure of power cannot be said to be accidental. It would be difficult to hold that non-supply was intentional by the Electricity Board. Such failure of power is accidental arising because of various reasons. Hence, there is no substance in this contention. Further, the amount awarded by the State Commission is on the basis of assessment of loss made by the Surveyor. It is to be stated that the Insurance Company has appointed two Surveyors. First Surveyor assessed the loss and recommended payment of Rs. 20 lakh. Thereafter, second Surveyor was appointed and. he recommended payment of Rs. 14,41,411. Relying upon that report the State Commission has passed the impugned order.

NO other contention is raised.

IN this view of the matter, this appeal is dismissed. There shall be no order as to costs.