NATIONAL INSURANCE COMPANY LTD Vs. MANGALAGOWRI CASHEW INDUSTRIES

JUDGEMENT

(1.) FIVE complaints were filed against M/s. National insurance Company Ltd. (hereinafter referred to as the Insurance Company) contending that the complainants were carrying on business of processing cashew nuts and in that connection they purchased dried raw cashew nuts in shells from a party in United Kingdom which was to be transported by sea from Apapa, Nigeria, via Colombo to be off-loaded at Tuticorin, from where it was to be carried by road to the business premises of the complainants around Mangalore. The cargo was booked in sea-worthy polypropylene bags, each bag containing 80 Kgs of cashew nuts (net) which were put in containers for being transported by sea. The goods were insured and the opp. party issued policies to the five complainants on different dates for different sums assured under each policy. It appears that when the cargo reached Colombo Port from Apapa, Nigeria, there was some delay in transshipment and when the goods reached Tuticorin, they were found to be affected by rain water, resulting in deterioration in value and quality of the packed cashew nuts to such an extent that they had become virtually useless.

(2.) IN the wake of such a happening, the complainants filed claims under the policies since the peril which had occurred was covered under the policy conditions. The opp.party, however, showed disinclination to settle the claim and, hence, the complainants were compelled to arrange for a survey by Lloyd's Agents and the report given by them were made available to the opp.party to settle the claim expeditiously. After considerable delay, the opp.party chose to repudiate the claim on the flimsy ground that the loss was not on account of any of the insured perils.

(3.) AFTER hearing the parties, the State Commission allowed the five complaints and directed the insurance company to pay, as under: