Consumer Protection: Insurer liable to pay interest for delay

The insurance regulations provide for a time-bound period for processing of claims. However, invariably there are inordinate delays in settlement.

Magppie Intern-ational, a Delhi-based company, had obtained a Standard Fire & Special Perils Policy from Oriental Insurance for Rs 26.74 crore to cover its building, plant and machinery, electrical installations, furniture, fixtures, fittings and office equipment at Sonipat in September 2012. 

A fire broke out at Magppie’s factory on May 31, 2013 resulting into complete loss of the property. A claim was lodged for the total sum insured of Rs 26.74 crore. The insurer appointed Mack Insurance Surveyors and Loss Assessors. In