IMPORTANT POINT
Non-payment of claim amounts and illegal repudiation of claim is deficiency in service on part of Insurance Company

Justice K.S. Gupta. Member —

Complaint was filed, inter alia, alleging that the complainant placed an order for import of 1600 metric tons of Soda Ash Light and 400 metric tons of Soda Ash Dense on Govcrest International S.R.L. Romania, through its agent-ATV Projects India Ltd. at the rate of USD 158.75 per metric ton, aggregating to USD 3,17,500.

Indent contract was dated 12th August, 1997 along with addendum dated 18th August, 1997. By the letter dated 29th August 1997 the complainant approached the opposite party-insurance company for a marine insurance policy of USD 3,49,250 being the value of the said goods at 110%. On payment of premium, the opposite party issued a cover note dated 4th September, 1997. On informing that the voyage of the cargo will be by Ship Golden Sunlight, the opposite party demanded overage premium as well as non-classification premium since that ship was an unclassified vessel built in 1971 which the complainant paid. Opposite party-Insurance Co. issued marine insurance policy bearing No.020900/21/11/06/01147/97 for a sum of Rs.1,26,35,865/- being USD 3,49,250. Ship, Golden Sunlight which left Constanta, was expected to arrive at Mumbai between 27th /30th October, 1997 but it failed to reach there on the announced date (s). Complainant made attempts to ascertain the delay in arrival of the ship at Mumbai and also its present location. Opposite party was also informed of this fact by the letter dated 12th December 1997. As the ship and cargo were not traceable, the complainant by the letter dated 29th December, 1997 informed the opposite party to settle the claim for the insured amount of Rs ,1,26,35,865/-.

2. Meanwhile, complainant continued its efforts to trace the whereabouts of the ship. It learnt that the said ship had proceeded to China and was contemplating to illegally discharge the cargo in China. It was stated that the complainant was, therefore, forced to engage advocates to arrest the ship and the cargo to minimize the loss. The complainant informed the opposite party about these developments by the letter dated 30th December, 1997. By the letter dated 2nd January, 1997, the opposite party acknowledged the fax message sent by the complainant and assured it that necessary action was being taken by the Head Office in the matter. However, no action was taken by the opposite party. By the letter dated 8th January, 1998 the opposite party informed the complainant that they have engaged ICC International Maritime Bureau, Essex, U.K. to protect the interest of the complainant and this agency had sent an investigator to Ningbo, China. Since the said policy was valid for six months only and proceedings before the Maritime Court in China to arrest the ship and get orders to have the cargo released and trans-shipped to Mumbai was likely to take time, the complainant sought extension of the insurance cover, which was granted by, the opposite party on receiving additional premium from time to time. It was stated that the cargo of other Indian buyers was also on board the ship Golden Sunlight and they were• insured either with the opposite party or other subsidiaries of General Insurance Corporation. Complainant remitted USD 50,000 being the share of fee and expenses to the Solicitors and Advocates in foreign exchange to conduct the proceedings filed in China. The complainant was successful in getting an order dated 27th April, 1998 for shipment of its cargo from China to Mumbai from Ningbo Maritime Court in China. Complainant was required to bear the expenses of legal fee, court fee, port charges, customs costs and re-shipment expenses etc. amounting to USD 2,70,000. It was stated that the complainant transported the cargo through MV RYOKOH I from Ningbo to Mumbai in May, 1998. Three bills of Lading bearing nos. 24,25 and 26 were issued for shipment of the cargo. The complainant appointed its surveyor and asked the opposite party also to appoint surveyor by the letter dated 9th June, 1998. Fina