JUSTICE V.K.JAIN (ORAL) The complainant took a loan of Rs.4 crore from OP-2 which is a cooperative bank. He also took a Standard Fir and Special Perils Policy from OP-1 Oriental Insurance Co. Ltd. for the period from 20.11.2014 to 29.11.2015 which was later renewed for the period from 20.11.205 to 29.11.2016. The insurance policy covered the plant and machinery as well as the building of the complainant. The insurance policy provided STFI Cover, Fire Basic Cover and Earthquake Cover to the complainant. It was stated in the insurance policy that it was subject to conditions, clauses, warranties and endorsements as per the form attached. The complainant has also placed on record the coverage under the policy as well as the terms and conditions forming its part. The aforesaid document to the extent it is relevant, reads as under:- “I. FIRE Excluding destruction or damage caused to the property insured by a) i) Its own fermentation, natural heating or spontaneous combustion ii) Its undergoing any heating or drying process. b) Burning of property insured by order of any Public Authority. II. LIGHTNING III. EXPLOSION/IMPLOSION Excluding loss, destruction of or damage a) To boilers (other than domestic boilers), economizers or other vessels, machinery or apparatus (in which steam is generated) or their contents resulting from their own explosion/implosion, b) Caused by centrifugal forces. IV. AIRCRAFT DAMAGE Loss, Destruction or damage caused by Aircraft, other aerial or space devices and articles dropped therefrom excluding those caused by pressure waves. V. RIOT, STRIKE AND MALICIOUS DAMAGE Loss of or visible physical damage or destruction by external violent means directly caused to the property insured but excluding those caused by a) Total or partial cessation of work or the retardation or interruption or cessation of any process or operations or omissions of any kind. b) Permanent or temporary dispossession resulting from confiscation, commandeering, requisition or destruction by order of the Government or any lawfully constituted Authority. c) Permanent or temporary dispossession of any building or plant or unit or machinery resulting from the unlawful occupation by any person of such building or plant or unit or machinery or prevention of access to the same. d) Burglary, housebreaking, theft, larceny or any such attempt or any omission of any kind of any person (whether or not such act is committed in the course of a disturbance of public peace) in any malicious act. e) If the Company alleges that the loss/damage is not caused by any malicious act, the burden of proving the contrary shall be upon the insured. f) Terrorism Damage Exclusion Warranty: i. Notwithstanding any provision to the contrary within this insurance it is agreed that this insurance excludes loss, damage cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any act of terrorism regardless of any other cause or event contributing concurrently or in any other sequence to the loss. ii. For the purpose of this endorsement an act of terrorism means an act, including but not limited to the use of force or violence and / or the threat thereof, of any person or group(s) of persons whether acting alone or on behalf of or in connection with any organisation(s) or government(s), committed for political, religious, ideological or similar purpose including the intention to influence any government and/or to put the public, or any section of the public in fear. iii. The warranty also excludes loss, damage, cost or expenses of whatsoever nature directly or indirectly caused by, resulting from or in connection with any action taken in controlling, preventing, suppressing or in any way relating to action taken in respect of any act of terrorism. iv. If the Company alleges that by reason of this exclusion, any loss, damage, cost or expenses is not covered by this insurance the burden of proving the contrary shall be upon the insured. v. In the event any portion of this endorsement is found to be invalid or unenforceable, the remainder shall remain in full force and effect. VI. STORM, CYCLONE, TYPHOON, TEMPEST, HURRICANE, TORNADO, FLOOD AND INUNDATION Loss, destruction or damage directly caused by Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood or Inundation excluding those resulting from earthquake, Volcanic eruption or other convulsions of nature (wherever earthquake cover is given as an “add on cover” the words “excluding those resulting from earthquake volcanic eruption or other convulsions of nature” shall stand deleted). VII. IMPACT DAMAGE Loss of or visible physical damage or destruction caused to the property insured due to impact by any Rail/ Road vehicle or animal by direct contact not belonging to or owned by a) The Insured or any occupier of the premises or b) Their employees while acting in the course of their employment. VIII. SUBSIDENCE AND LANDSLIDE INCLUDING ROCK SLIDE Loss, destruction or damage directly caused by Subsidence of part of the site on which the property stands or Land slide/Rock slide excluding: a) The normal cracking, settlement or bedding down of new structures b) The settlement or movement of made up ground c) Coastal or river erosion d) Defective design or workmanship or use of defective materials e) Demolition, construction, structural alterations or repair of any property or groundworks or excavations. IX. BURSTING AND/OR OVERFLOWING OF WATER TANKS, APPARATUS AND PIPES X. MISSILE TESTING OPERATIONS XI. LEAKAGE FROM AUTOMATIC SPRINKLER INSTALLATIONS Excluding loss, destruction or damage caused by a) Repairs or alterations to the buildings or premises b) Repairs, Removal or Extension of the Sprinkler Installation c) Defects in construction known to the Insured. XII. BUSH FIRE Excluding loss, destruction or damage caused by Forest Fire. PROVIDED that the liability of the Company shall in no case exceed in respect of each item the sum expressed in the said Schedule to be insured thereon or in the whole the total Sum Insured hereby or such other sum or sums as may be substituted therefor by memorandum hereon or attached hereto signed by or on behalf of the Company.” 2. The case of the complainant is that the land on which its building stands has been acquired by the Central Government under the provisions of Section 3A the National Highways Act, 1956. 3. On acquisition of the land underneath the building, the complainant lodged a complaint with the insurer which was repudiated vide letter dated 6.9.2018 which to the extent it is relevant, reads as under:- “With reference to above, please refer to your letter dated 24.8.2018 enclosing therewith Intimation, Claim form & notice for damage caused due to passing of N.H.8 E by National Highway Authority, which occurred during the Policy period 20.11.2015 to 19.11.2016. The claim is not tenable for the following reasons: As per Policy Coverage under Perils 5 : RIOT, STRIKE AND MALICIOUS DAMAGE : Loss of or visible physical damage or destruction by external violent means directly caused to the property insured but excluding those caused by b) Permanent or temporary dispossession resulting from confiscation, commandeering, requisition or destruction by order of the Government or any lawfully constituted Authority. As per the General Exclusion 6.1 No claim under this policy shall be payable unless detailed notice of loss/claim is given within 15 days of the claim, 6.II) In no case whatsoever shall the company be liable for any loss or damage after the expiry of 12 months from the happening of the loss or damage. Thus, as per above coverage/exclusion, your claim is not tenable which please note.
4. Being aggrieved from the repudiation of the claim, the complainant is before this Commission. The contention of the learned counsel for the complainant is that the land having been acquired by the Central Government under the provisions of Section 3A the National Highways Act, 1956, it cannot be said to have resulted from confiscation, commandeering, requisition or destruction and, therefore, the loss is not covered under the Exclusion Clause. This is also his submission that the terms of the policy were not made available to the complainant. 5. Assuming that the claim was not covered under the Exclusion Clause referred in the repudiation letter, the claim in my opinion is otherwise not maintainable since acquisition of land by the Government is not one of the perils against which the insurance cover was granted. In other words, the insurance policy taken by the complainant did not cover the loss on account of acquisition of the property by the Government under the provisions of Section 3A of the National Highways Act, 1956 and for that matter any other law permitting the Government to acquire land and buildings. The insurance policy taken by the complainant gave insurance cover only against the perils specified therein, i.e., Fire, Lightning, Explosion/Implosion, Aircraft Damage, Riot, Strike and Malicious Damage, Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood, Inundation, Impact Damage, Subsidence and Landslide Including Rock Slide, Bursting and/or Overflowing of Water Tanks, Apparatus and Pipes, Missile Testing Operations, Leakage from Automatic Sprinkler Installations and Bush Fire. Since acquisition of land by the Government was not one of the perils against which the insurance cover was granted, the claim lodged by the complainant is per se not maintainable. Therefore, no consumer complaint against the insurer on account of denial of the claim is maintainable. The complaint is, therefore, dismissed with no order as to costs. | 
