IMPORTANT POINT
Insurance Company cannot repudiate a bonafide claim.

K.S. Chaudhari, Presiding Member—This appeal has been filed by the appellant against the order dated 31.03.2009 passed by the West Bengal State Consumer Disputes Redressal Commission, Kolkata (in short, ‘the State Commission’) in SC Case No. 01/0/2007 – Indo Danish Tool Room & Anr. Vs. Oriental Insurance Co. Ltd. by which, complaint was allowed against OP No. 1 and OP NO. 1 was directed to pay Rs.18,72,917/- with 9% p.a. interest and complaint was dismissed against OP NO. 2.

2. Brief facts of the case are that Complainant/Respondent No. 1 imported a Co-ordinate measuring machine from U.K. having CIF value of Rs.43,99,711.50 which was duly insured with the AIG-Europe (U.K.) Limited for its carrying from UK to N.S. Dock, Kolkata under a policy of insurance dated 16.8.2005. The said consignment was packed in a 20 feet flat container containing two wooden boxes i.e. ½ and 2/2. The said goods arrived at Kolkata port on 26.9.2005, unloaded from the vessel and kept at N.S. Dock for completion of necessary customs formalities and carriage of the same to the place of business of the Complainant at Jamshedpur. Thereafter the said goods were insured with the OP No. 1/appellant for its carriage from Kolkata Port to Jamshedpur, the place of the complainant. At the instance of the OP NO. 1, Sri Sukrit Sircar, surveyor and loss assessor made a pre-insurance survey on 30.9.2005 and on being satisfied and on the basis of his report the OP No. 1 accepted the proposal of insurance and issued necessary policy on 30.9.2005. On completion of the customs formalities, the aforesaid goods were cleared and removed from the dock by lorry on 2.10.2005 and the same have been received at the Complainant’s premises at Jameshdpur on 5.10.2005. On 8.10.2005 the goods were inspected by opening the boxes in the presence of the representative of the consignor and the consignee and prepared the minutes. On opening the box no. 2/2, a corrugated box was found completely water soaked and water gushed out of the wooden box. It was further found that the inner contents of the corrugated box were completely water soaked and damaged and some spares were found short which the complainant’s representative noted, but the balance consignment has been found in sound condition. The matter was brought to the notice of the local office of the OP No. 1, Jamshedpur on 8.10.2005. At the instance of the OP No. 1 Sri J.K. Das, Surveyor of the Insurance Company was entrusted to examine the matter further on 8.10.2005 and after examination he submitted his report. Damaged/rusted samples, manual and stationary items, which were inside the said corrugated box, were sent to M/s. R.V. Briggs & Co. Pvt., Kolkata for analysis of the water extract of the samples who on examination reported that there were chloride content. It was further observed by J.K. Das in his report that rust developed on the machine accessories on account of water logging for more than 20 to 30 days which has affected the consignment prior to the receipt of the consignment in Kolkata Port and the same has been proved by the analysis of the water extract of the sample. It has also been observed that damages of the accessories of the machine are genuine and consistent. As the machine cannot be utilized the complainant lodged its claim before the OPs. But both the OPs ignored the claim of the complainant and have contended that the loss did not occur during the period of carriage of their policy period. The complainant sent two letters to the OP separately on 18.10.2006 and 31.10.2006 claiming the loss amount of the consignment which occurred due to their deficiency in service, but to no effect. The OP No. 1instead of considering the claim, forward the same to AIG-Europe (U.K.), who in terms of the agreement refused to accept its liability on the plea that damage occurred after the termination of their policy and advised to pursue the claim with the OP No. 1. The OP No. 1 by their letter dated 10.11.2006 also refused