IMPORTANT POINT
Change of destination without intimation to Underwriter can nullify Insurance cover.

Per Justice R.K. Batta, Presding Member —

The complainant received an order in August-September, 1994 for supply of 1266 cartons (weighing 25 tons and 320 kgs.) of frozen POO Shrimps from M/s. Temptations S.A., Antwerp, Belgium. When the goods were ready for export, the complainant obtained comprehensive insurance to cover the risks, rejection or otherwise involved in the export of its consignment of PUD Shrimps. On 7th September, 1995 the complainant had stuffed the consignment in a refrigerated container and despatched, which was received at the Jawaharlal Nehru Port Trust at Mumbai in perfect condition. The complainant obtained clearance from local Lloyd’s Agent M/s Tata Tea Ltd. as well as from the Pilot Test House, Export Inspection Council (Ministry of Commerce, Government of India), certifying that the consignment in question was export- worthy and was in consonance with the standards prescribed by the Government of India. The Insurance Company covered comprehensive risk including the rejection risk of the Consignment vide policy dated September 8, 1995 for a sum of Rs.22,29,839/- for which one time premium of Rs.64,223/- was paid. The consignment was loaded on the vessel “Elite” on 8th September, GL 1995 and the vessel sailed on or about 19th September, 1995 carrying the said consignment to the consignee M/s. Temptations, S.A., Antwerp. The complainant was dealing with M/s. Temptations, S.A., Antwerp for the first time and asked to issue a letter of credit in favour of the complainant. However, M/s. Temptations, S.A., Antwerp failed to do so. Therefore, the complainant was constrained to contact another buyer M/s. Eclat France International, France for the purchase of the aforesaid consignment. M/s. Eclat France International, France agreed to purchase the goods from the complainant and an invoice dated 7.9.1995 and a bill of lading dated 8.9.1995 for shipment of container No.586071 to M/s. Eclat France International, France was drawn for shipment of 1266 cartons of frozen POO Shrimps from Nhava Sheva, Bombay to Rungis, France via Antwerp. According to the complainant the fact of change of ultimate consignee was brought to the notice of the Insurance Company by telephonic discussion. M/s France International, France issued purchase order dated 8th October, 1995. The Vessel “Elite” with the consignment reached Rotterdam, Holland on or about 17th October, 1995. The container was to be discharged by Dutch Authorities but without any physical examination, the Dutch Authorities discharged the container only on the basis of documents supplied to them. The consignment had to make road journey so as to reach Rungis, France. The final inspection of cargo was to be carried out only at Antwerp, the final point of discharge. The consignment reached Rungis, France where the container carrying the consignment was opened and samples were tested by French Authorities. On inspection, the French Authorities rejected the consignment on the ground of bacterial contamination. The complainant informed M/s. N.V. Beeckmen De Vos, the Survey and Claims Agents mentioned in the insurance policy of the arrival of the consignment and survey of the consignment was carried out by the said agency. The complainant, by letter dated 21.11.1995 wrote to Insurance Company informing them rejection of consignment due to bacterial contamination. Since the consignment was rejected by French Authorities, the complainant advised the Insurance Company to allow it to ship consignment back to India so that the salvage would be sold in order to minimize the loss suffered. Accordingly, the Insurance Company, by letter dated December 13, 1995 wrote to Overseas Surveyors M/s. N.V. Beeckman De Vos to advise the consignee to ship back the consignment to Mumbai. The consignment arrived on 6.2.1996 and the Insurance Company informed the complainant that it has deputed M/s. Trans Ocean and Marine Surveyors to survey and assess the loss. M/s. Trans Ocean and Marine Su