Malabar Fertilizers

Date 23-Jul-2021 Ref. FR-E/02-FSR-UIC-02/20-21 Malabar Fertilizer SURVEY REPORT- FIRE By Rohit Reghunath SLA-74737 Insurance Surveyor & Loss assessor Flat No. 2 Aiswarya Apartments Near St. Alphonse Church Perinthalmanna, Malappuram Dt. [email protected] Phone: +91-9995949885

ROHIT REGHUNATH, B-Tech, MI; SURVEYOR LOSS ASSESSOR Licence No: SLA / 74737 Date of Expiry: 19th March 2023 SURVEY REPORT- FIRE 2 Executive Summary The survey report giving the detail of a fertilizer making unit owned by Mr. Fiyas which was put on fire by some people. Contents Executive summary 2 How, what happened! Cause and impact 3 Insurer 3 Insured M/s Kerala Gramin Bank Karulai; A/C Prop. Fiyas 3 Location 4 What they produce! 5 What they insured – Fire & allied perils 5 5 Survey details 6 Total stock 7 7 Condition of Average 8 What they claim! 8 Extent of Loss 8 Assessment 9 Policy Excess Comments

ROHIT REGHUNATH, B-Tech, MI; SURVEYOR LOSS ASSESSOR Licence No: SLA / 74737 Date of Expiry: 19th March 2023 SURVEY REPORT- FIRE 3 How, what happened! Cause and impact On 24/09/2020 night, some people did forceful entry to the premises and put fire at the corner of the shed casusing damage to the battery, controler/inverter, and a portion of the shredding machine. Insurer United India Insurace Co. Ltd. Branch Office , Nilambur Policy Number: 3007031119P111488977 Period of Insurance : 29/11/2019 12:30 Hrs To: 28/11/2020 Midnight Sum Insured: Rs.9,00,000/- Insured M/s Kerala Gramin Bank Karulai; A/C Prop. Fiyas Mr. Fiyas taken a loan from M/s Kerala Gramin Bank, Karulai branch for starting the unit. Sum Insured as per Policy: 1. Building - Superstructure : Rs. 0.00. 2. Stocks/ Contents : Rs.9,00,000/- Total Sum Insured : Rs.9,00,000/- Police report details FIR number : 0845 Date : 25/09/2020 Police station : Edakkara Case number WP © No. 1896/2020 (J)

ROHIT REGHUNATH, B-Tech, MI; SURVEYOR LOSS ASSESSOR Licence No: SLA / 74737 Date of Expiry: 19th March 2023 SURVEY REPORT- FIRE 4 Location Kalkullam, Karulai, Nilambur, Malappuram District Moothedam Gramapanchayath. The said unit working inside forest area near to Poolokkapara Forest office, surrounded by electric fensing. This shed seems to be made by clearing some rubber trees inside a rubber plantation.

ROHIT REGHUNATH, B-Tech, MI; SURVEYOR LOSS ASSESSOR Licence No: SLA / 74737 Date of Expiry: 19th March 2023 SURVEY REPORT- FIRE 5 What they produce! This unit produce fertlizers from waste by shredding it and mixing with chemicals. This unit not started its operation, only trial run was over till the date of incident, as informed by the Insured's representative. What they insured – Fire & allied perils Item Sum insured 1. Building - Superstructure Rs. - 2. Stocks/ Contents Rs. 900,000.00 Rs. 900,000.00 Total Survey details On receipt of survey instruction from United India Insurance Co. Ltd., Nilambur Branch Office on 07/10/2020, the undersigned reached the site, along with the Branch Manager, United India, Nilambur, on 08.10.2020 @ 04.40 pm to inspect the insured property. The Insured was not available at that time. So he arranged a person, who he knew, to open the door of the shed and he was available for facilitating our inspection of reported loss / damage. The shed was situated inside the forest, near to the check post. The whole area was surrounded by electric fence. The area seems to be a rubber estate, partially cleared for making this shed. The shed is made up of roofing sheets. We entered through an iron door on the front (which was locked). We saw the machine on the other end of the shed with its conveyer system lying on the mid portion of the shed. A battery and some controller were there on the left front corner inside which was completely burnt, and next to it, two fire extinguisher cylinders were found fire affected. The sheets used as the wall on the front side and left side front end, affected by the fire. The top portion of the motor, used in the conveyer system, was also affected by fire, a part of the conveyor belt burnt and a few portions hanging on the conveyor system. A few burnt plastic drums were also there on the floor. On the other end portion of the shed, saw a heap of stock in process, as informed by the Insured’s representative. I, after the survey, informed the Insured to submit the necessary documents along with Estimate of loss. Received an old quotation for battery, and controllers on 25.02.2021 & a letter from the repairer stating that the complete machine must be replaced as it was fully damaged (deteriorated) and a new quotation for shredding machine on 26.02.2021 from the Insured, after several reminders. The Insured talked to me over phone soon after forwarding the above and when saw the mail I confirmed him the receipt of the email and attachments and informed him that I required a few important clarifications from the repairer to proceed further. Enquired the repairer, over phone, why they suggested for the complete replacement of the machinery, the person in charge, after checking, informed me that the fire damaged the entire machine and the machine cannot be used any more. So I raised my doubt, how the damage on the motor end of conveyor will damage the machine and he replied that the heat from the fire may affect the switches and inner main motor and the shredding wheels badly, which requires replacement. He said their Service Engineer visited the site and gave the report like that. The said Engineer was in Bhubaneswar at that time, so he suggested that, if necessary he’ll send him to the site once more for checking the machine by dismantling it. I informed him that I will email him my doubts and after getting its clarifications we can arrange for a joint inspection along with the Engineer. As agreed by the In Charge of the Company, I emailed my doubts. I didn’t get a reply even after a reminder. Then, as instructed by the Insurer, I sent registered letters to the Insured and the Repairer. The Registered letters sent to the Insured got back as unclaimed.

Enquired the repairer, over phone, why they suggested for the complete replacement of the machinery, the ROHcpaIeTnrRsnEooGntHbiUneNcAuhTsaHer,dgBe-aT,neaycfhtm,eMroIcr;ehSU.eRScVokEYinOI RrgaL,OiisSnSefAdoSSrmEmSSyOeRddLoimcuenbecett,Nhoha: StoLAtwh/ 7et4h7f3ei7redDaadtemaomfaEgxapegiryeo: d1n9tththhMeearecmhn2ot0it2ro3ermenadchoinf ecoannvdetyhoSerUmwRiaVllcEhYinReEPORT- FIRE 6 damage the machine and he replied that the heat from the fire may affect the switches and inner main motor and the shredding wheels badly, which requires replacement. He said their Service Engineer visited the site and gave the report like that. The said Engineer was in Bhubaneswar at that time, so he suggested that, if necessary he’ll send him to the site once more for checking the machine by dismantling it. I informed him that I will email him my doubts and after getting its clarifications we can arrange for a joint inspection along with the Engineer. As agreed by the In Charge of the Company, I emailed my doubts. I didn’t get a reply even after a reminder. Then, as instructed by the Insurer, I sent registered letters to the Insured and the Repairer. The Registered letters sent to the Insured got back as unclaimed. The Repairers, on receipt of my letter, sent me an email stating that the machine must be replaced since dismantling, transporting new items to the site and replacing cost will be greater than the actual cost of the machine. They added that they had sold more than 1000 machines but till date they didn’t get in such a trouble and asked me not to contact them for more details and to contact the Insured instead. On our inspection only the conveyor motor top end, bottom roller and a part of the conveyor belt were affected by fire, for that they were asking for replacement of the entire machine. Since I have not received the rate of the actually damaged parts of the machine & didn’t get a chance to check the internal parts of the shredding machine (which they suspects a total loss) with the help of their service Engineer, I am unable to assess the actual loss caused due to this incident. The damage happened to the battery, inverter/controller, plastic drums & fire extinguisher can only be recommended. Since the battery and the controller/ inverter, change over switch were completely burnt, and these items are of different types and different price band, so verification of its purchase bills are needed for claim settlement. Total Stock- Present rate 932,200.00 55,000.00 Machine (as per the qoutaion submited) 43,000.00 Electrical fittings 25,000.00 8,000.00 Solar inverter and battery 2,663.00 Plastic drums 100*250 Raw materials 1,065,863.00 Fire extinguishers Total

ROHIT REGHUNATH, B-Tech, MI; SURVEYOR LOSS ASSESSOR Licence No: SLA / 74737 Date of Expiry: 19th March 2023 SURVEY REPORT- FIRE 7 Condition of average Rs. 1,065,863.00 Total stock or present rate of contents as per the Rs. 1,000,000.00 estimate submitted 6.18% Sum insured Percentage of diversion from the SI Sum insured was Rs. 10,00,000/- and the total stock as per the statement submitted is Rs.10,65,863/- What they claim! The Insured claimed a total amount of Rs. 8,93,363/- as property distroyed or damaged, in the claimform, as follows: Sl No Description of affected property Value at the time of fire 1 Machinery + Tax Rs. 607,700.00 2 Plant and shed Rs. 150,000.00 3 Electrical fittings Rs. 55,000.00 4 Solar and inverter batteries Rs. 45,000.00 5 Plastic drum (100X250) Rs. 25,000.00 6 Raw material Rs. 8,000.00 7 Fire extiguisher Rs. 2,663.00 Later on forwarded a quotation dated 26.02.2021 to replace the machinery - Rs.9,32,200/- and a quotation dated 07.01.2020 for Rs.43,000/- for batteries and invertor.

ROHIT REGHUNATH, B-Tech, MI; SURVEYOR LOSS ASSESSOR Licence No: SLA / 74737 Date of Expiry: 19th March 2023 SURVEY REPORT- FIRE 8 Extent of Loss When inspected the premises the motor of the conveyor system, it's belt, 13 plastic drums, one battery and one solar controller/inverter were found damaged in the event. The shed was not insured. The raw materials and the chemicals used for that was kept on the other side of the shed, so not affected. No visible damages to the main portion of the shredding machine, even to the paint coat, by fire/smoke/ heat. The energy meter and its connections of KSEB which was there just behind the fire affected area was intact. Assessment QTY Landing cost Total ITEM Plastic drum @ 100 13 1,300.00 1,300.00 Solar battery 1 28,000.00 28,000.00 Solar controller 1 8,000.00 8,000.00 Wiring and electrical fittings incl 1 7,000.00 7,000.00 labour for fitting the controller fire extiguishers 2 2,663.00 2,663.00 Total amount 46,963.00 Net Assessed loss Rs. 46,963 Rs. 46,963.00 Net assessed loss Rs. 0.00 Salvage value Rs. 46,963.00 Assessed loss less Salvage value Rs. 46,963 Value after applying Condition of average Net Adjusted loss Rupees Fourty six thousand nine hundred and sixty three only Policy excess 5% of assessed amount minimum Rs. 10,000/-

ROHIT REGHUNATH, B-Tech, MI; SURVEYOR LOSS ASSESSOR Licence No: SLA / 74737 Date of Expiry: 19th March 2023 SURVEY REPORT- FIRE 9 Comments 1. I have not observed any type of breach of warranties, terms and conditions of the policy. The loss occurred due to an insured peril , so the company is liable as per the policy conditions. Therefore , I recommend to settle the claim subject to the perusal, observation and decision of the Underwriters. 2. Visited the premises along with the Branch Manager, United India insurance Co Ltd., Nilambur and had discussion with the Insured over phone and in person in the cabin of the BM, United India. 3. Condition of averge not applied. 4. I, on receipt of a mail from the Insured on 26/02/2021, attached with the suppliers/repairers letter stating that the machine is deteriorated to scrap and quotation for new machinery, I have contacted the Repairers / Suppliers over the phone. Their Office in charge informed me that their Service Engineer visited the site and reported that the machine was deteriorated and require replacement. When I raised the doubt about only a small portion of the machine was affected by the fire, he suggested that they will send the Engineer once again to clear my doubt. I told him that I will send my doubts by email, after getting its clarification, send their Engineer for a joint inspection for dismantelling the machine to ascertain the actual damages, which he agreed. Thus I sent a mail to get clarification on their suggestion of a replacement of entire machinery since a small portion of it was fire affected. And also the difference in the price of the Machinery between the Quotation, the purchase invoice and their post in Industrial buying site. I didn't get a reply. As suggested by the Insurer, I sent a Registered letter to the Insured and to the Suppliers, Linga Technologies for the same. The letter sent to Insured returned unclaimed. I got the reply from M/s Linga Technologies through email. They said the dismantling, transportation, repair, replacement, and reassembling, will fetch more than that of a new machine. And asked me not to contact them for any more clarification instead contact the Insured. 5. I was waiting for the Engineer to visit the site for dismantling and checking the actual damages, and to get the commissioning report from them which is not yet happened. 6.The Insurer arranged a meeting with the Insured for discussing the matter on 23/06/2021. During the meeting I have informed the Insured again the requirements to proceed further in the claim. He suggested to send an email for the same. But when sent an email (with copy to the Branch Manager, UIIC Nilambur) requested to forward me the Repair Estimate of the fire affected parts of the machinery, invoice of battery, inverter/controller, accessories & plastic drums, fire brigade report, and the copy of the Panchayat licence that he have recently collected, as he said the other day, he replied that he has given all the above mentioned items 4 months back. I have informed the matter of non-receipt of the documents to the Insurer. Later, the Insurer sent an email to the Insured to forward the documents supporting the claim to their email id and to the third reminder the Insurer got a reply from Insured on 10/07/2021 with the earlier attachments - the letter from the supplier, quotation for a new shredding machine and the old quotation of the battery and controller again.

ROHIT REGHUNATH, B-Tech, MI; SURVEYOR LOSS ASSESSOR Licence No: SLA / 74737 Date of Expiry: 19th March 2023 SURVEY REPORT- FIRE 10 7. The purchase rate of the machine was Rs. 6,07,700/- while in the Quotation submitted by the repairer, the rate increased to 9,32,200/-. 53.51% increase in the rate of machine ( the repairer informed that after covid issues the rate of the machines increased exponantially. 8. Soft copy of the letter and qoutation from the repairer, old qoutation of battery submitted by the Insured are attached. Panchayath Licence copy, Fire brigade report, Charge sheet, Final Investigation report not obtained. 9 . Encl: a) Policy copy. b) Claim form c) Certificate from Kerala State Pollution Board d) NOC from Govt of Kerala e) NOC from Fire dept. f) Certificate from Health Dept g) FIR (First investigation report) h) Ownership details of building (from LSG site) i) Spot photos j) Purchase invoice copies of Fire estinguisher, Shredding machine,bioclean blocks k) Letter from KGB bank - intimation l) Letter from the repairer, and quotation for new shredding machine and an old quotation for battery, inverter/ controller and its accesories. m) Photographs n) Copy of emails sent & received “THIS REPORT IS ISSUED WITHOUT PREJUDICE”