Flowtex Products Vs United India Insurance Co. Ltd. (NCDRC Delhi)
Surveyor Report Can Act As Prerequisite For Claim But Neither Conclusive Nor Binding Nature:
Summary: The National Consumer Disputes Redressal Commission (NCDRC) ruled in the case of Flowtex Products Vs United India Insurance Co. Ltd. that a surveyor’s report is a prerequisite for filing an insurance claim but is neither conclusive nor binding. The case involved a fire at Flowtex Products’ factory, which was insured by United India Insurance. The insurance company repudiated the claim based on a surveyor’s report and a private lab’s findings that suggested foul play. However, the NCDRC noted that the company’s manufacturing materials contained hydrocarbons, which rendered the private lab’s findings inconclusive. The court placed more weight on independent evidence from a government forensic lab and a police investigation, both of which found no evidence of foul play or the use of external accelerants. Citing previous Supreme Court rulings, the NCDRC held that an insurer cannot deny a claim if the insured is not the cause of the damage and that a surveyor’s report is not the final word. Finding the insurance company’s actions to be a deficiency in service, the NCDRC directed it to pay the full claim amount along with interest and litigation costs.
