AMARNATH HARBANS LAL Vs. NATIONAL INSURANCE CO LTD

JUDGEMENT

(1.) The complainant is a partnership concern and the present complaint has been filed through its partner Mr. Harbans Lal. The firm is dealing in vegetable oils and as commission agent, including supplying and distribution of vegetable oils to different parties throughout the country. The firm had obtained an Open Marine Policy initially for Rs.10,00,000/- (Rupees ten lakhs only) for the period 20th August 1990 to 19th August 1991. On 12.6.91, one tanker No. RJ-14-G-0702 was loaded with 1208 Kgs. of mustard oil at Ghasana (Rajasthan) and the same was to be carried to Amingaon (Assam ). The invoice price of the oil was Rs.3,42,468/- which in various documents on record has been recorded a rounded off to Rs.3,42,000/-. GR No.535 dated 12.6.91 was issued by the carrier M/s. Ravi Transport Services. The tanker met with an accident near Gokulavas Khandia (Rajasthan) on 14.6.91. The tanker was overturned and was badly damaged. Some of the oil leaked from its compartments resulting in loss of 5570 kgs. of oil; and the balance 6,510 kgs. oil only could be delivered to the consignee. The carrier furnished short delivery certificate to the complainant. On learning about the accident, the complainant requested Mr. Pramod Chhabra, Surveyor and Loss Assessor based in Jaipur to visit the spot and carry out survey. Accordingly, Mr. Chhabra visited the site on 15.6.91 and submitted his report-dated 28.8.91 only. He assessed the loss to the tune of Rs.1,57,909.50 taking the price of 5,570 kgs. of mustard oil @ Rs.28.35 per kg.

(2.) Although initially the policy had been taken for a sum of Rs.10.00 lakhs, the case of the complainant is that from time-to-time, the aforesaid limit was enhanced after obtaining necessary endorsement on the original policy and payment of additional premium. Further case of the complainant is that the unadjusted amount of insured value exceeded the value of various dispatches as per the declaration made from time to time and furnished to the Insurance Company in accordance with the terms and conditions of the Open Marine Policy. Further case of the complainant is that cheque No.618366 dated 10.6.91 whereby the ensured amount was enhanced upto Rs.20.00 lakhs was delivered on the same day i. e.10.6.91 personally to Sh. M. M. Dutta Sr. Divisional Manager through complainant's employee one Mr. Praveen Kumar. On that day, on account of a fire incident, the office of the Insurance Company was being temporarily shifted from Himalaya House, New Delhi to some other place. Receipt for the said cheque was, however, issued in due course on 19.6.91 by which time another cheque-dated 17.6.91 had also been delivered to the Insurance Company regarding another consignment. The complainant lodged a formal claim, made available all relevant documents, but the Insurance Company failed to settle the claim and on the contrary, repudiated the same vide letter dated 31.1.92. The present complaint was filed on 22.4.93 claiming Rs.1,62,871/- besides 18% interest and Rs.10,000/- for mental agony and tension suffered by the complainant.

(3.) In the written statement filed by the Insurance Company, it was stated that in order to make the Insurance Company liable, the complainant was required to pay the premium either in cash or by cheque before the occurrence of the loss in view of the provisions of the Sec.64vb of the Insurance Act, 1938. In the present case, the cheque for Rs.6,651 /- was actually delivered to the Insurance Company only on 19.6.91 after the occurrence of the loss and after putting a date of 10.6.91 thereon. It was denied that the cheque had been delivered to the Senior Divisional Manager by the Company on 10.6.91 as averred by the complainant. With regard to the adjustment of the insured amount having regard to payment of premium from time to time and upward revision of the amount insured on payment of additional amount on obtaining endorsement, the Insurance Company set-out in detail the relevant data to show that on the date of dispatch of the consignment in question i. e.12.6.91, the balance of the insured amount was only Rs.2,78,000/- as against the invoice value of the consignment in question namely Rs.3,34,000/-. The aforesaid credit balance was, therefore, totally insufficient to cover the invoice value of the consignment in question. It was for this reason and after due consideration of the facts and record that the Insurance Company had rejected the claim. Along with the written statement the Insurance Company filed Annexures, A and B giving break-up of the various dispatches and the invoice value thereof in terms of the inland transit open policy from time to time as well as letter dated 31.1.92 rejecting the claim.