NCDRC orders United India Insurance to pay Levi’s Rs 7.48 crore
today Aug 12, 2019
The National Consumer Disputes Redressal Commission has ordered United India Insurance to pay Rs 7.48 crore ($1.12 million) to U.S. denim brand Levi’s for losses incurred in a 2008 Bengaluru warehouse fire.
NCDRC ruled in favour of Levi’s at a recent hearing, the Press Trust of India reported. The NCDRC’s Presiding member, V K Jain, also ordered the insurance firm to pay Levi’s compensation for not originally paying the business, in the form of simple interest at 9% per year on the claim.
"The opposite party [United India Insurance] shall also pay the principal amount of Rs 74,844,265 to the complainant," said the Commission. "The opposite party shall also pay compensation in the form of simple interest at 9% per annum on the aforesaid 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."
Levi’s had made a claim to the insurance company, following damage to caused by the fire that broke out in its Bengaluru warehouse in 2008, caused by an electric short circuit.
Levi’s initially filed the insurance claim against United India Insurance for Rs 12.2 crore but it was declined. Over ten years on, the business will now be compensated.