SHIVA INTERNATIONAL FASHIONS Vs. ORIENTAL INSURANCE CO. LTD.

JUDGEMENT

(1.) This is the oldest case pending before this Commission which was, perhaps, filed on 18.12.2000. It is well said that "Weakness on both sides, is, as we know, the trait of all quarrels".

(2.) M/s. Shiva International Fashions is a Proprietorship entity. Sh.Mukesh Luthra, is its Sole Proprietor. Its principal place of business is at New Delhi and its factory is situated at 23, HSIDC, Maruti Industrial Complex, Sector-18. The complainant transacts the business of export of ready-made fashion garments to various countries, though, primarily to South Africa. The complainant was holding a marine insurance policy under "Open insurance policy cover", dated 07.07.1995 for the period from 07.07.1995 to 06.07.1996 for an initial total value of Rs.2.00 crores only. M/s. Oriental Insurance Co. Ltd., OP1 had insured the same from its Branch, situated at Gurgaon, Haryana, OP2. The policy has been placed on record as Annexure-A.

(3.) The said policy stipulated that the transit risk cover would be provided on all sea shipments made by the complainant anywhere in the world, except Russia and Nigeria, subject to each shipment to be of the maximum value of Rs.50.00 lakhs only. The insurance policy permitted all shipments to remain covered against transit risks subject to insurance premium having been paid in advance, implying that the value of total insurance cover at any given point of time equals or exceeds the value of the shipment before dispatch. The additional insurance covers from time to time to ensure that all the shipments made during the validity period of the policy remained covered against transit risks. In the marine insurance Declaration Nos. 31, 32 and 34 it is categorically stated that under the Head "Special Instruction", that if any claim arises, settlement of the same is to be done in favour of the complainant, copies of said declaration Nos. have been annexed as Annexure B (colly).