Mumbai firm loses liquor worth ₹1.2 crore to floods, insurance company to pay for it
A Kurla-based firm claimed that his stock of liquor bottles and cans were damaged in the torrential rainfall.
A Mumbai liquor wholesaler lost over ₹1.2 crore worth of stock when floods ravaged the city in 2017, with the National Insurance Company being ordered to pay the sum plus interest. The South Mumbai District Consumer Disputes Redressal Commission ruled that the insurer's refusal to accept the claim was arbitrary and unreasonable.
The company's warehouse was submerged in muddy floodwater from the Mithi River, contaminating the liquor and making it unsellable. Despite the insurer's surveyor recommending a ₹1.2 crore settlement, the insurance company denied the claim. The commission noted that the insurer had failed to produce forensic reports or videographic evidence of the damage, and that no laboratory would certify the contaminated stock.
The commission held that the insurer's rejection was invalid and directed the company to pay the assessed loss, plus 9% interest and additional compensation for mental stress and litigation costs.
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