Tue Jan 20 04:05:00 UTC 2026: ### Headline: Consumer Forum Slams Insurance Company for Delaying and Repudiating Fire Claim, Awards ₹11.29 Crore to India-Japan JV

The Story:

An Indian consumer forum has found Liberty General Insurance Company Limited guilty of deficiency in service for an unreasonable delay and subsequent repudiation of a fire insurance claim filed by Mipalloy Nomura Plating Company LLP, a joint venture between India and Japan. The company’s factory in Sriperumbudur, which specializes in copper and copper-alloy plating, recoating, and refurbishment for steel plants, was significantly damaged by a fire on April 10, 2019. Despite timely reporting of the incident and submission of claim documents, the insurer delayed the investigation for years, eventually rejecting the claim in January 2023.

The consumer forum has now directed the insurance company to pay ₹11.29 crore with 6% interest from November 7, 2024, alongside ₹5 lakh for mental agony and deficiency in service, and ₹10,000 for litigation costs. The insurer argued that the company violated safety norms, a claim refuted by the forum given the factory’s existing fire safety measures.

Key Points:

  • Mipalloy Nomura Plating Company LLP, an India-Japan JV, suffered a major fire on April 10, 2019.
  • The company had a fire insurance policy with Liberty General Insurance Company Limited for ₹28 crore.
  • The company filed a claim for ₹19.07 crore, reporting it promptly.
  • The insurer delayed the investigation and repudiated the claim in January 2023.
  • The Additional District Consumer Commission, Chennai (North), ruled in favor of the complainant and ordered the insurer to pay ₹11.29 crore plus interest and compensation.
  • The ruling highlighted that the factory had fire safety measures in place and that automatic sprinklers were not mandatory.

Key Takeaways:

  • Insurers face increasing scrutiny for delaying or denying legitimate claims.
  • Consumer forums are willing to penalize insurers for deficient service and causing undue hardship.
  • Businesses should ensure they comply with all relevant safety regulations, regardless of insurer arguments.
  • Legal recourse is a viable option for companies facing unfair insurance claim denials.
  • The ruling emphasizes the importance of prompt and fair claim settlement by insurance providers.

Impact Analysis:

This ruling could have a significant impact on the insurance industry, potentially leading to more cautious and timely handling of fire insurance claims. It empowers policyholders and sets a precedent for holding insurers accountable for delays and arbitrary claim rejections. The financial penalty, coupled with reputational damage, could compel insurers to reassess their claim processing practices. The long-term effect might be increased transparency and fairness in insurance settlements, ultimately benefiting businesses and consumers alike.

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