This was the case to learn in for importers in which one of the importer faced with insurance company. Importer imported cargo from Czech Republic but got the consignment in damaged condition. When the claim was lodged with insurance company, the chain of troubles started. The importer was well learned and was from big and well established corporate house, but still some petty mistakes done by the importer while dealing with insurance company made him loss of few lacs of rupees and he had to settle with less money than what he ought to get.
Importer: Indian importer was an owner of the pharmaceutical factory producing penicillin and other allied products. For his factory importer wanted to import Diesel Generator from Czech Republic.
Before starting import, importer obtained Marine – cum - Errection Sterage – cum - Errection insurance for the period of 18 months (between 1994 - 95) from Appellant / opponent company.
Then, importer placed an order for supply of imported Diesel Generators from Czech Republic for their factory.
For that import purpose he appointed Express Transport Carrier as its clearing & shipping agent.
After Generator Sets had landed at Mumbai, clearing agent entrusted Adars Transporter for purpose of transportation & carriage to Masar, the final place of the importer. When consignment reached to importer, aforesaid consignment was received in badly damaged condition.
Therefore, clearing & shipping agent on behalf of importer, lodged claim with transport co.
After inquiry, appellant / importer later on, came to know that the aforesaid Generator sets had toppled out during transit and thereafter it was transshipped in damaged condition.
Importer / appellant intimated to respondent insurance company about these facts & lodged a claim with it.
Appellant appointed surveyor for inspection of damage to Diesel Engine. Respondent / insurance company, appointed another surveyor as joint Surveyor.
Importer / Appellant agreed for net loss of Rs. 51.99 lac as full & final assessed amount, as per Surveyor report against claim lodged for Rs. 57.60 lacs.
Respondent Insurance company instead of releasing the claim amount of Rs. 51.99 lac, issued a loss voucher for Rs. 40.66 lac on non standard basis without stating reason as to how insurance company has treated claim on non standard basis.
Contention of complainant / importer is that as day to day economical condition of his company getting weaker & as they have been referred before B.I.F.R., importer is accepting amount & for rest of amount keep his claim reserved.
Importer / complainant / appellant filed a complaint in the competent court.
Therefore respondent insurance company withheld the importer’s claim without any valid reason for rest of amount.
Importer / complainant got defeated in this court.
Aggrieved by the order the importer approached higher level competent court.
????? LEGAL QUESTION ?????
1. If the importer / complainant has accepted amount of 40.75 lac as full and final settlement or not or has accepted the said amount under protest & have kept rights reserved for rest amount?
2. Had the insurance company obtained signed / executed discharge voucher of appellant / complainant / importer by fraud, misrepresentation, undue influence or like coercive bargaining compelled by circumstances?
Old Cases & Judgments Discussed in this case
United Insurance Vs. Ajmer Singh & others
This is a very good case to understand and to get education to the import export business practitioner / entrepreneurs that be careful while signing any single document and read everything on document before putting your sign. Your one sign can put you in loss for many lacs.