Consumer redressal forum directs insurance company to pay Levi Strauss Rs 7.48 crore

  •  India
  •  Sep 20, 2019
  •  By WFB Bureau
  • 2040 Views
Consumer redressal forum directs insurance company to pay Levi Strauss Rs 7.48 crore

Apex consumer redressal forum, National Consumer Disputes Redressal Commission (NCDRC) has passed a judgement in favour of Levi Strauss, a global denim brand and directed United India Insurance to pay Rs 7.48 crore as claim to Levi Strauss India Private Limited.

The brand claimed for its losses that it incurred in a fire that broke out in one of its warehouses in Bengaluru in 2008 due to electric short circuit.

“Besides the compensation amount, the insurance company will also pay compensation in the form of simple interest at nine per cent per annum on the claim amount with effect from seven months from the date of appointment of the surveyor till the date on which the payment in terms of this order is made,” said NCDRC Presiding member V K Jain.

The case came into highlight when company claimed for damages incurred during fire in Bengaluru warehouse of Levi Strauss due to electric short circuit. It had filed an initial claim of Rs 12.20 crores with the insurance company, which was repudiated. The grounds behind rejection was that the loss was covered only under the “Companies Insurance Policy”, which was originally taken by the parent company of Levi Strauss, based out of United States.

However, the insurance company, while repudiating Levi Strauss India's claim did not consider the other global policy taken by the company, namely “Global All Risks Property Policy”, primarily taken by companies to cover global risks.

Image Source: https://www.acko.com

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