SKY GEMS Vs. NATIONAL INSURANCE CO LTD

JUDGEMENT

(1.) The Complainant-petitioner exported two consignments of precious stones (emeralds) to U.K. These were insured under two policies with the Opposite Party Insurance Co. against loss for 85,740.55 (CIF value + 10% ). The two consignments were lost in transit on 10th September, 1990 and the Complainant Insured lodged a claim on 23.1.1991 for the replacement cost of the goods viz. 25% higher than the CIF value + 10% for which it was insured. The amount claimed from the Insurance Co. was 1,07,175.69 on 23rd January, 1991;

(2.) The complainant has alleged that the Opposite Party -Insurance Co. has delayed settlement of claim on one pretext or the other causing thereby business loss to the complainant due to ruduced imports and corresponding reduced exports because of the inability to make payments due to non-availability of funds. The complainant has pleaded that in consequence, he could not make overseas payments, could not import raw material and had to keep orders pending worth Rs. 1.5 crores. According to him there was loss of profits due to decline in exports in 1990-91, 1991-92 and 1992-93 avoidable payment of interest on bank loans and avoidable travel expense. During the period their claim has not been settled, they have also suffered due to variation in the exchange rates to the extent of Rs. 24.00 lakhs.

(3.) Consequently, the complainant claimed reliefs in para 36 of his complainant as under: