Authority: Supreme Court of India, Civil Appellate Jurisdiction
Order Date: 22 September 2026
Case Overview
- Parties: United India Insurance Company Ltd (appellant) vs M/S GVR Cold Storage (respondent).
- Background: Respondent held two standard fire and special perils insurance policies covering its cold‑storage building, machinery and stock for the periods 09‑08‑2010 to 18‑08‑2011 and 06‑05‑2011 to 05‑09‑2011.
- Incident: On 06‑07‑2011, torrential rain caused the collapse of a chamber in the cold‑storage plant, damaging the building and stored stock. The claim was raised in January 2012.
- NCDRC Order: On 04‑01‑2023, the National Consumer Disputes Redressal Commission directed United India Insurance to pay Rs 3,34,25,044 plus interest to the respondent (Consumer Case No. 54/2014).
- Surveyor Findings: Rank Surveyors Pvt. Ltd, an approved surveyor under Section 64UM of the Insurance Act, 1938, submitted a report dated 05‑02‑2012 concluding that the loss resulted from structural defects – poor design, inferior material, substandard workmanship and electric pipes placed inside columns – and was not caused by any insured peril. The loss was quantified at Rs 52,43,881.
- NCDRC Reasoning: The Commission relied on self‑serving certificates from the respondent alleging lightning as the cause, ignored the approved surveyor’s report, and did not independently assess the net loss, thereby awarding an amount far exceeding the surveyed loss.
Final Outcome
- The Supreme Court allowed the appeal, set aside the NCDRC order dated 04‑01‑2023, dismissed Consumer Case No. 54/2014, and ordered the return of the suitor’s fund of Rs 50,000 with interest to United India Insurance Company Ltd. All pending applications, if any, stand disposed of.
Topics: Insurance Claim, Consumer Protection