NATIONAL INSURANCE CO. LTD. Vs. ATLANTIC SHIPPING SERVICES

JUDGEMENT

(1.) Being aggrieved from the order dated 30.4.2010 of the State Consumer Disputes Redressal Commission, Gujarat (in short 'the State Commission'), National Insurance Co. Ltd. has filed the present appeal.

(2.) In short the case is that MV.TIMO ship of the respondent was insured for Rs.72,50,000/- with the appellant from 22.09.2004 to 21.09.2005 under the hull and machinery policy. Ship sank on 1.11.2004 while going from Blackberry Port to AnchordBuranted. The ship was carrying 845 MT of iron ore fines. The Insurance Company was informed of the accident on 1.11.2004 itself. The port office issued notice to the respondent on 5.11.2004 to bring out the vessel or destroy it. The respondent issued advertisement for salvaging vessel and finally work was given to Kanishka Salvage & Under Water Services Pvt. Ltd. As the notice was received by the respondent, he sent reminders to the Insurance Company to settle the claim as early as possible. Finally, the Insurance Company repudiated the claim on 1.6.2005 on the basis that no peril of the sea operated and that the loss of the vessel was caused by fatigue failure, which was caused by normal wear and tear. The respondent then filed a consumer complaint before the State Commission, which vide its order dated 30.4.2010 accepted the complaint and passed the following order:-

(3.) The present appeal has been filed by opposite party/appellant against the order of the State Commission.