OZMA SHIPPING COMPANY Vs. ORIENTAL INSURANCE CO LTD

JUDGEMENT

(1.) This is a complaint filed by a partnership firm in the name of M/s. Ozma Shipping Co., having its main office at Mangalore, Karnataka, carrying on business as cargo carriers, shipping and clearing agents against M/s. Oriental Insurance Co. Later, Bank of Baroda was allowed to be impleaded as a party to the proceedings on their submission that the Bank had extended the credit facilities against the beneficiary, under the insurance policy taken by the complainant. The facts of the case are :

(2.) The complainant is the owner of a mechanized sailing vessel named "MSV Ozma" bearing Registration No. CLR-126 for carrying goods and registered at the Port of Cuddalore, Tamil Nadu under the Mercantile Shipping Act and the same was insured on 14th December, 1987 for a sum of Rs. 21,50,000/- under Insurance Policy No. 42223/2/0/MH/569/87 MHE/332/ 88 with the Oriental Insurance Co. A total premium amount of Rs. 40,832.50 was paid for the above policy for the coverage for the term from 14th December, 1987 to 13th March, 1988 and subsequently extended the term of the insurance cover from 14th March, 1988 up to 13th June, 1988 by payment of Rs. 30,383.00 as the premium and Rs. 322.50 on stamp duty accordingly. The Official Surveyor of the Insurance Company, Mr. Ashraff conducted the survey to assess and determine the value of the said vessel and accordingly issued the Valuation and Seaworthiness Certificate on 18th September, 1987 before insuring the vessel. He opined that the said vessel should last for another 12 years if properly maintained and valued it at Rs. 21,50,000/-.

(3.) The vessel "MSV Ozma" sailed from Beypore on 23rd April, 1988 at 3.00 p.m. to Kavarati loaded with goods after obtaining necessary port clearance. That very night when the vessel was 50 miles off around 10.00 p.m., the crew members noticed sea water entering into the vessel due to strong wind and rain. In spite of the best efforts of the crew members, the vessel completely sunk at 10.30 p.m. with the entire cargo. The crew members managed to save themselves using life boats.