Lightning Strike, Not Rain: Insurance Company Ordered to Cover Cold Storage Loss.
20 June 2024
Consumer Protection Act >> Consumer Rights | Insurance >> Personal Law
A consumer court has ruled in favour of an insured company whose stored goods were damaged in a cold storage facility. The court determined the insurance company must pay the insured amount, reversing an earlier dismissal of the claim.
The crux of the dispute centred on the cause of the damage. While the policy covered lightning strikes, it excluded flood damage. Initially, the cold storage owner reported rain as the culprit. However, the insured company later argued that a lightning strike caused structural damage, allowing rainwater to enter and spoil their goods.
The insurance company rejected the claim, citing the initial report and a lack of conclusive evidence regarding lightning. The court, however, disagreed with the insurance company's surveyor's assessment. They found the surveyor disregarded the evidence presented by the insured company and relied on assumptions instead of concrete proof.
As a result, the court ruled in favour of the insured company. The insurance company is now obligated to pay the insured amount along with interest, calculated from the date the claim was denied.
This case highlights the importance of maintaining detailed records and presenting all available evidence during an insurance claim. It also emphasizes the role of the court system in holding insurance companies accountable for honouring their policies.