The valuation fixed by a valued policy is conclusive of the insurable value of the subject insured, as per Sections 29 and 30 of the Marine Insurance Act, 1963.

Mr. Justice M.B. Shah, President—The complainant, is a widow belonging to socially and economically backward class, was the owner of a wooden barge having registered tonnage which was built in the year 1990. The said barge was registered at Port of Varaval and the market value of the said barge was assessed at Rs. 95 lakhs. Admittedly, the complainant was having an insurance policy for the said barge since 1984 onwards. On 22.1.1998, the barge sank near the coast of Iraq and 9 crew members died. The Insurance Company was informed and thereafter a claim was filed with the Insurance Company. As the insured amount was not paid, this complaint was filed on 15.1.2001 wherein it was claimed that the Insurance Company be directed to pay a sum of Rs. 1,85,57,000/- with interest @ 18% on the sum of Rs. 1,04,70,000/- from the date of the complaint till the payment or realization. The claim was divided into two parts. One claim was for Rs. 95,000/- for barge and Rs. 4,50,000/- for 9 crew members @ Rs. 50,000/- for the death of each crew member. That claim was on the basis of the second policy issued by the opposite party Insurance Company. Other claim was for miscellaneous expenses as mentioned in Exhibit A-10.

2. Undisputedly, the policy dated 3.4.1997 issued by the New India Assurance Co. Ltd. is a ‘valued policy’ w.e.f. 1.3.1997 to 25.2.1998.

3. Valuation is based upon the survey report of Mr. G.P. Dave and Sons. Prior to the aforesaid report dated 30.12.1995, in 1994 also the Insurance Company has obtained survey report dated 7.2.1994 wherein valuation for the barge was arrived at Rs. 70 lakhs.

4. It is also an admitted fact that on 5.2.1998, the Divisional Manager of the Insurance Company has written a letter to the complainant with regard to a telephonic talk on 25.1.1998 and subsequent discussion which they had at Veraval Branch for notifying to all concerned authority with regard to the casualty. That copy was sent to Government insurance fund wherein it has been specifically mentioned as under:

“The above vessel is gone for total loss and your share is 60%. The value of the vessel is Rs. 95 lacs. Kindly register the claim and take due note of the same.”

5. Despite this, for the aforesaid loss, Insurance Company by its letter dated 4.2.2000 informed the complainant that Insurance Company was prepared to pay Rs. 70 lakhs as full and final settlement. In the said letter, it has been inter alia stated as under:

“The above vessel has been insured for the following period as per details given below:

From the above it is noted that the vessel has remained uninsured for a period of time, though we understand that during the period 1993, it was insured with United India.

On going through the insurance history, initially the vessel had been covered on wider term basis for a value of Rs. 30 lacs (as against the valuation of Rs. 35 lacs) and subsequently covered into restricted basis for a higher sum i.e., Rs. 70 lacs, effective 1.3.1994 based on the valuation report Shri Bipin G. Sanghvi, who has estimated the value of hull structure to be Rs. 62 lacs and of engine Rs. 8 lacs.

We further notice that once again in the year 1995 a valuation was carried out by Shri G.P. Dave and sons, at the request of owner. There is no evidence on record that the Insurance Company has called for any valuation report in support or an increase in sum insured. He has assessed the value of the vessel at Rs. 95 lacs. (Hull structure —Rs. 65 lacs, Machinery and auxiliaries —Rs. 27 lacs and Accessories —Rs. 3 lacs, vide his report dated 30.12.1995. However, from the description we notice that only hull structure have undergone certain changes, that too on account of routine maintenance but machineries and Auxiliaries have remained the same. You will agree that machineries over the years will only depreciate in value. We note that the hull value remained almost same even with modification as assessed by the Surveyor but the values of engine/machinery/accessories increa