15 years after restaurant fire, insurer told to pay owner Rs 52.6 lakh
The Delhi State Consumer Disputes Redressal Commission has ordered New India Assurance Company to pay over Rs 52 lakh to a restaurant owner for a 2011 fire insurance claim. The ruling follows a long legal battle regarding the assessment of damages and the insurer's refusal to pay the full claim.
Why it matters
This case underscores the difficulties consumers face in insurance claim settlements and the role of consumer commissions in holding large insurers accountable.
NEW DELHI: The Delhi State Consumer Disputes Redressal Commission has directed New India Assurance Company to pay Rs 52,62,708 to a restaurant owner over the settlement of an insurance claim after a fire destroyed his establishment in 2011. The commission awarded Rs 51,12,708 towards the balance claim, Rs 1 lakh for mental agony and harassment and Rs 50,000 as litigation costs. The judgment was passed on August 25, 2026.Why did the restaurant owner approach the commission?According to the commission order, the complainant was running a hotel, bar and restaurant named Tamba Indian Cuisine in Rajouri Garden, New Delhi. The establishment was insured with New India Assurance under a Standard Fire and Special Perils policy with a sum insured of Rs 1 crore.A major fire broke out at the premises on May 4, 2011, completely destroying furniture, fixtures, fittings, electrical installations, stock-in-trade and other articles.
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