You are here : Home » Companies
Posted On : 16 Mar, 2017  Source : PTI  Place : New Delhi 
NCDRC asks insurance firm to pay Rs 1.78 cr to Levis Strauss
The apex consumer commission has asked an insurance firm to pay over Rs 1.78 crore to Levis Strauss, a global jeans manufacturing brand, as insurance claim against its gutted warehouse in Bengaluru.

The National Consumer Disputes Redressal Commission (NCDRC) asked the United India Insurance Company Limited to pay Rs 1,78,92,808 to Levis Strauss (India) Private Limited after rejecting the insurance company's claim that the client was covered under global policy taken by its parent company from another insurance firm.

"In the present case, the domestic policy i.e. the policy issued by the opposite party (insurance company) covered only the actual cost of the goods damaged or destroyed in the fire.

To this extent, the global policy was not applicable," a bench headed by Justice V K Jain said.

Global insurance policy is a commercial liability policy with extended worldwide coverage. It provides coverage in the event the policyholder is sued or any other damage anywhere in the world.

According to the complaint filed by the jeans brand major, the company had taken a global insurance policy called STP (Stock throughput) Policy from Allianz Global Corporate and Speciality.

Levis Strauss, however, had submitted that they had taken a Standard Fire and Special Peril Policy from the United India Insurance Co. Ltd., to the extent of Rs 30 crore for reimbursement of the loss, if any, on account of the destruction or damage of its property due to specified perils.

On July 13, 2008, a fire broke out at the company's Bangalore warehouse allegedly causing a loss to the extent of USD 70,19,808 (Rs 45.87 crore). They made an initial claim of Rs 12.20 crores.

The insurance firm, however, denied the claim on the ground that the assets affected by fire in the warehouse were covered under the global policy taken by its parent company from Allianz Global Corporate and Speciality.
Comments