Industry Odisha Bureau,Sep 13: A consumer commission has ordered New India Assurance to pay Victorinox India ₹8.06 crore. The insurer had repudiated a 2019 fire insurance claim. The panel called the rejection legally unsustainable.
A Mumbai consumer commission has ordered a major payout. New India Assurance must pay Victorinox India ₹8.06 crore. The dispute stems from a 2019 warehouse fire. The insurer had repudiated the fire insurance claim.
Victorinox Fire Claim Reaches Consumer Commission
A fire broke out at Victorinox India’s warehouse in 2019. The blaze struck on February 16 at a customs bonded warehouse. Warehouse staff first attempted to control the fire. JNPT Fire Services were later called in. The fire caused extensive damage to stored goods. Victorinox held a Standard Fire and Special Perils Policy. New India Assurance had issued that policy. Victorinox India is wholly owned by Switzerland-based Victorinox AG. The company deals in travel bags, knives and watches. It also distributes cutlery and other consumer products.
Surveyor Assesses ₹8.06 Crore Loss
The insurer appointed a surveyor to assess the damage. The surveyor calculated the net loss at ₹8,06,49,573. This assessment relied on site inspections and submitted documents. The fire loss itself was not substantively disputed.
New India Assurance Repudiates Claim
New India Assurance repudiated the claim in January 2021. The insurer cited non-submission of certain agreements and invoices. Screenshots of the order vary on the exact clause invoked. One passage cites Clause 6(i); another cites Clause 6(b). The dispute centred on documentation, not the loss itself. The insurer did not dispute that a fire occurred. Nor did it dispute the surveyor’s damage assessment.
Commission Rejects Technical Grounds
The commission examined email records between the two parties. It found Victorinox had repeatedly supplied requested documents. The company also joined virtual conferences on surveyor queries. The panel called the repudiation “solely on technical grounds.” It found the rejection legally unsustainable. The commission also found unfair trade practice. It further found deficiency in service by the insurer.
₹8.06 Crore Plus 9% Interest Ordered
New India Assurance must pay the full ₹8,06,49,573 claim. The commission also ordered 9% interest on this amount. Interest runs from the date the complaint was filed. Victorinox was awarded ₹50,000 for mental distress. Another ₹50,000 was ordered towards litigation costs. All payments are due within 45 days.
The order highlights a distinction insurers often face. Surveyor assessment and procedural compliance are separate matters. Here, the loss itself remained largely undisputed. The commission found procedural grounds an inadequate basis for rejection. The case does not establish a wider legal precedent. Each insurance dispute still depends on its own facts. This order concerns only Victorinox and New India Assurance.
