The Coca-Cola Company has filed a suit in Georgia Federal Court against Lloyd’s of London and another insurer seeking for compensation worth $ 1 million to cover the loss caused during the 2015 blockade in Nepal. According to a website law360.com, the US beverage maker has stated that the company was ensured under a political risk policy it held with the insurer.

 “Coca-Cola says the blockade cut off the flow of essential raw materials to its two plants in the county, causing one to shut down and the other to run at limited capacity. The beverage maker says the event falls squarely under “political risk,” and that Lloyd’s and International Insurance Co. of Hannover have wrongly refused to pay its $1 million claim,” a news run by the website reads.

The complaint has stated that the insurers under the terms of the policy “received substantial premiums in exchange for a promise to provide broad insurance coverage, including coverage for [losses caused by] the Nepal-India Border Blockade,” the website states. The policy “does not limit or exclude Coca-Cola’s claim for coverage, and Coca-Cola has satisfied all conditions precedent to coverage.”

“Coca-Cola says the policy has a $50 million cap, and is suing for breach of contract, and seeking $1 million plus interest, as well as a judgment that the loss is covered by the policy,” reads the news report.

 “The inability for supplies to arrive in Nepal significantly limited the Coca-Cola Bottling Plants’ ability to obtain sugar, fuel, CO2, and other supplies,” the complaint said. “The inability to run [one plant] to capacity and [the other] at all led to significant business interruption losses to Coca-Cola.”

According to the complaint, “Despite Coca-Cola’s correspondence to the insurers, the insurers have disregarded Coca-Cola’s rights under the [policy] and continued to wrongfully deny coverage to Coca-Cola.”.

Coca-Cola did not say in its complaint why the insurers refused to cover the claim, the law360.com report states. 

According to law360.com, Coca-Cola is represented by Anthony P. Tatum and Nicholas G. Hill of King & Spalding LLP.