NATIONAL INSURANCE COMPANY LTD Vs. J SARVESWARA RAO

JUDGEMENT

(1.) This is an appeal against the Order dated 24.8.1991 of the State Commission of Andhra Pradesh wherein it held that the appellant insurer here, who was the respondent before the State Commission, was guilty of deficiency in service to the insured Respondent/ complainant in the payment of the amount due to the respondent; the appellant had taken unreasonably long time to finalise the loss claimed under the Policy of insurance and paying the same to the respondent insured.

(2.) The relevant facts briefly are that the respondent complainant had got a Marine Hull Insurance Policy for its mechanised sailing vessel for a period of one month from 25th March, 19J8 to 24th April, 1989 for a sum of Rs. 24 lacs. The Insurer collected a premium of Rs. 15,711/- provisionally subject to the approval of the policy by the Insurance Tariff Advisory Committee.

(3.) The vessel ran aground on 17th April, 1988 near Madras and thus was a loss under the policy. The appellant Insurer appointed M/s. J.B. Boda Surveyors Private Limited as preliminary Surveyors to survey the damage on 17th April, 1988 and appointed a firm of final Surveyors & Adjusters on the 27th May, 1988.