The commission mentioned in its order that an interest of 12 per cent per annum would be applicable on the compensation amount after the date of submission of survey report from August 4, 2005. The insurance firm was also asked to pay Rs 3,100 as costs of litigation.

The company stated that the stock and raw material, semi-finished and finished goods that they purchased were insured with the firm from time to time as per the stock available. The company had got its stock worth Rs 1 crore insured with the insurance company.

The petitioner further stated that on the night of August 2, 2004, there was heavy rain in the area. It rained continuously for 48 hours, which damaged the goods of the company. The company complained about it to the police for which a DDR was registered.

The insurance firm, on getting the intimation letter from the company, appointed a surveyor to investigate the matter. The surveyor visited the factory premises and prepared the list of insured items which were not affected by the rain, valued around Rs 20.6 lakh, while the company estimated the loss to be Rs 80.74 lakh. As there was delay in finalisation of the claim, the company served them a legal notice in February 2005. Later, the petitioner got a reply from the insurance firm stating that the surveyor has assessed the damage to the tune of Rs 6.77 lakh.

The insurance firm, however, denied there being any delay on their part in settling the claim. They stated that the delay was due to the non-cooperative approach of the petitioner.