Insurer made to pay claim for sabotage

Kesar Enterprises, a limited company engaged in the manufacture and sale of sugar and allied products, had obtained a standard fire and special perils policy from National Insurance Company.

- JEHANGIR B GAI

The policy, which was valid from July 1, 2016, to June 30, 2017, covered the insured’s establishment and stock at its Bareilly unit.On March 12, 2017, the staff discovered leakage of a large quantity of molasses from a tank. They informed the police and excise department, as well as the insurer, and carried out salvage operations to minimise the loss. A preliminary internal inquiry and investigation indicated sabotage through malicious damage to the tank’s valve system. Senior technical and security officers confirmed that someone had deliberately tampered with the discharge valve and associated fittings, and that there was no evidence of any structural defect or mechanical failure. The police investigation also concluded that someone had caused the sabotage, but the police could not identify the culprits.