Seller / Complainant took marine policy & paid premium of Rs. 3.91 Lac which covered goods within distance by water of 20 n.m off port or place of construction or it would be covered at a premium to be arranged in event of such distance being exceeded.
Complainant sent his cargo from Pondicherry to Mumbai.
Casualty to barges took place off Sri Lanka Coast.
Complainant paid additional premium of Rs. 5.27 Lac after mishap.
Then seller / complainant claimed for damages.
Insurance company repudiated claim.
Case filed.
+++++ +++++ +++++ +++++
Detail Case Discussion
+++++ +++++ +++++ +++++
Seller from Pondicherry.
Buyer at Mumbai.
Cargo was to be sent by sea from Pondicherry to Mumbai.
Event Chronology of this case
97.10.22 => Marine Hull Policies, obtained for period 15TH September 1997 to 14 September 1998
98.3.25 => Vessels were complete (but it’s information was not sent to Opponent – Insurance company)
98.3.30 => Certificates dt 30TH March 1998 says that Vessels were complete on 25TH March 1998 but no evidence was led that it’s information was sent to OP Insurance Company.
99.3.31 => Affidavit of complainant states that amount of Rs. 3,91,000/- was debited on 31ST March 1999 towards issuance of policy, dt 31ST August 1999.
98.4.27 => At request of complainant / seller, period of policies extended 4m 15TH September 98 to TH July 99.
98.5.17 => Voyage commenced for Delivery
98.5.27 => Loss / damage (occurred on their way 4m Pondicherry to Mumbai)
98.5.27 => Loss / damage was conveyed to OP Insurance Company by telephone
98.5.28 => Loss / damage was conveyed to OP Insurance company by telegram
98.6.1 => Loss / damage was conveyed to OP by letter
98.7.9 or 10 => Complainant paid further premium of Rs. 5,27,000/- (i.e. after loss occurred) of its own without seeking addition in policy.
99.2.12 => OP repudiated claim by Letter
99.7.14 => OP repudiated claim by Letter
99.8.31 => Another policy was taken
LAWS & THEIR SECTIONS DISCUSSED IN THIS CASE
Sections of Marine Insurance Act 1963
Insurance Act & Insurance Rules 1939
Institute Clauses on Navigation
LEGAL QUESTIONS
1. What is the role of the COURTs while interpreting T&C of a Contract of Insurance?
2. Can Courts Amend / Substitute anything in Ins. Contract?
3. Whether alleged premium paid on 10TH July 1998 of Rs.5,27,000/-, after the event can be taken into consideration?
OLD CASES REFERRED IN THIS CASE BY THE COURT
1. Suraj Mal Oil Mills Vs. United India Ins. Co. & Anr (SC)
2. Gen. Assurance Soc. Vs. Chand Jain, 1966 (SC):
3. Harchand Rai Chandan Lal’s case, 2005 (SC):