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NEW DELHI: The Delhi State Consumer Disputes Redressal Commission has directed New India Assurance Company to pay Rs 52,62,708 to a restaurant owner over the settlement of an insurance claim after a fire destroyed his establishment in 2011. The commission awarded Rs 51,12,708 towards the balance claim, Rs 1 lakh for mental agony and harassment and Rs 50,000 as litigation costs. The judgment was passed on August 25, 2026.
Why did the restaurant owner approach the commission?According to the commission order, the complainant was running a hotel, bar and restaurant named Tamba Indian Cuisine in Rajouri Garden, New Delhi. The establishment was insured with New India Assurance under a Standard Fire and Special Perils policy with a sum insured of Rs 1 crore.
A major fire broke out at the premises on May 4, 2011, completely destroying furniture, fixtures, fittings, electrical installations, stock-in-trade and other articles. The incident was reported to the police and fire department, after which the insurer appointed surveyors to assess the loss.
The complainant said the original purchase bills had been destroyed in the fire, but certified copies obtained from suppliers were submitted to the surveyor.
The insurer denied the allegations and argued that the complainant was not a consumer because the insurance policy had been obtained for commercial purposes. The bench of president Justice Sangita Dhingra Sehgal and member Bimla Kumari rejected the insurer's argument that the complainant was not a consumer, observing that he was earning his livelihood from the hotel.
“On further perusal, we find that there is no specific clause in the insurance policy regarding 75 percent depreciation merely because the original invoices were not available. “Despite this, the Opposite Party settled the claim only for Rs. 16,88,995/- (Rupees Sixteen Lakh Eighty-Nine Thousand Nine-Hundred and Ninety-Five Only). “Keeping in view the facts of the present case and the extensive law as discussed above, we direct the Opposite Party to refund the policy cover as per the bills adduced by the Complainant after deducting the difference of the claimed amount already paid to the Complainant i.e., Rs.
The insurer was directed to pay Rs 51,12,708 with 6 percent annual interest from May 4, 2011 to August 25, 2026, provided the amount was paid by October 25, 2026.
