7 Years After Warehouse Fire, Insurer Told To Pay ₹8.06 Crore To Victorinox India
Mumbai: Seven years after a fire destroyed the customs bonded warehouse of Victorinox India Pvt Ltd, a consumer commission has directed New India Assurance Company to pay more than Rs 8.06 crore after holding that the insurer unfairly rejected the claim on technical grounds. The District Consumer Disputes Redressal Commission (South Mumbai), in its September 2 order, said the legitimate insurance…
Seven years following a warehouse fire that destroyed Victorinox India Pvt Ltd's customs bonded warehouse, a consumer commission has ordered New India Assurance Company to pay over ₹8.06 crore. The District Consumer Disputes Redressal Commission (South Mumbai) ruled that the insurer unjustly denied the legitimate insurance claim due to technical reasons.
Despite the loss being assessed by an insurer-appointed surveyor, New India Assurance dismissed the claim on procedural grounds, labeling it a "mechanical" decision. The fire occurred at Victorinox India's warehouse on February 16, 2019, causing extensive damage to goods stored there. An insurer-appointed surveyor determined a net loss of ₹8,06,49,573 from the damaged goods.
However, New India Assurance refused to pay the claim in January 2021, arguing that certain internal agreements and invoices were not submitted as per policy conditions. The consumer commission found that the insurer's decision was based on procedural issues rather than the assessed loss, making it an unfair trade practice. The commission directed New India Assurance to pay the assessed loss, along with 9% interest from the date of the complaint, Rs 50,000 for mental distress, and Rs 50,000 towards litigation costs within 45 days.
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