SITHA VEDANAYAGAM Vs. NEW INDIA ASSURANCE CO LTD

JUDGEMENT

(1.) AFTER hearing Mr. Joseph Vellapally, Sr. Advocate, appearing on behalf of the Appellant and Mr. S.M. Suri, learned Advocate for the Respondent Nos. 1 & 2, we are of opinion that the contention advanced by the Appellant's Counsel by placing reliance on Section 29 of the Marine Insurance Act, 1963, has to be upheld. The said Section clearly postulates that where the policy issued by the insurer is a 'Valued policy", in the absence of fraud, the value fixed by the policy is, as between the insurer and assured, conclusive of the insurable value of the subject intended to be insured". The policy in question in this case has been produced before us and forms part of the paper book of the case. It is clear therefrom that it is a "valued policy" and the Insurance Company had accepted the valuation given by the Complainant and the policy makes specific mention of the valuation as Rs. 2,70,000/-.

(2.) THE subject matter of the insurance in the present case was a country boat and in support of the valuation given in the proposal the insured had produced before the Insurance Company a valuation report dated August 29, 1989 prepared by an approved Surveyor. The Insurance Co. on being satisfied with the said valuation report decided to accept the proposal and it was thereafter that it issued the policy for a valuation of Rs. 2,70,000/-.

(3.) THOUGH the contention based on Section 29 of the Marine Insurance Act had been specifically raised by the Complainant before the State Commission, unfortunately the State Commission has totally omitted to deal with the said important aspect. Instead, it proceeded to assess the valuation of the boat with reference to a survey report which was prepared at the instance of the Insurance Company subsequent to the occurrence of the accident. On the basis of the said approach to the case the State Commission has thought it fit to fix the value of the boat at Rs. 1,64,000/-which was the quotation submitted by a boat builder at Nagapatinam in response to an invitation issued by the Surveyor for submissions of quotations for building a similar boat. In addition to the said amount of Rs. 1,64,000/- the State Commission has also held that the Complainant is entitled to an amount of Rs. 5,000/- by way of salvage expenses. The State Commission took the view that since an amount of Rs. 1,33,650/- had been offered by the Insurance Co. to the Complainant on 11.2.1990 the Complainant was entitled to be awarded interest only on the difference between Rs. 1,64,000/- and Rs. 1,33,650/-. Accordingly the State Commission, by the operative part of its order, directed that a total amount of Rs. 34,100/- with interest thereon from 11.2.1990 till the date of full payment is made by the Insurance Company to the Complainant.