India Glycols Limited has officially moved to recover a ₹79.76 crore insurance claim from The New India Assurance Co. Limited. Following multiple rejections of its claim regarding equipment damage at its Kashipur plant, the company has filed an application for Pre-Institution Mediation and Settlement before the Delhi High Court. This legal step marks the company’s commitment to recovering losses related to material damage, machinery breakdown, and business interruption sustained in 2020.
Dispute Background
The conflict centers on an insurance policy held by India Glycols Limited, which covered property damage, machinery breakdown, and consequential business interruption across various operational plants. In 2020, the company filed a claim following significant damage to machinery and equipment at its Kashipur facility. Despite providing comprehensive documentation and repeated representations to the insurer, the claims were consistently repudiated.
Legal Strategy and Claim Value
Armed with favorable legal opinions, the company is seeking to recover a total of ₹79.76 crore. This amount accounts for both material damage and loss of profit incurred by the organization. As of May 21, 2026, the company has initiated the formal mediation process at the Delhi High Court Legal Services Committee. Management remains optimistic that the judicial process will validate their claim, potentially resulting in a significant financial recovery for the company.
Source: BSE
