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NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI
Subhash Chandra, Presiding Member
M/s Parenteral Drugs
(India) Limited – Complainant
versus
M/s United India Insurance
Company Limited and Anr. – Opp. Parties
Consumer Case No.142 of 2014
Decided on 6.3.2023
Consumer Protection Act, 1986 – S.21[Consumer Protection Act, 2019 – S.58] - Services – Insurance – Loss occurred due to unloading of crane – Delivery not accomplished - alleging deficiency in service by the opposite parties in the settlement of an insurance claim - Whether the consignment covered under the Marine Caro Specific Voyage Policy had been delivered to the complainant under the terms of the policy - While the policy was for transit, it is also notable that it was from the ware house of the consigner to the factory premises of the consignee. The fact that the loss occurred during unloading from the carne has been interpreted by the opposite party (insurance company) to be the responsibility of the complainant since it had engaged a crane from M/s N.B. Crane Services for the purpose. The opposite party has not produced any delivery note from the complainant to conclusively establish whether the delivery under the policy had been completed - The arrival of the consignment carrying truck into the premises cannot be condoned as ‘delivery’. In view of the fact that delivery itself was not accomplished, and a claim was raised, the issue of applicability of the clause of ‘or 7 days whichever is earlier’ would not apply. Therefore, the delivery of the consignment cannot be interpreted to have been successfully completed, therefore, there is merit in the complaint that consignment was not “delivered” to the complainant and is liable to succeed – Complaint allowed. [Paras 16 to 19].
Result: Complaint allowed.
ORDER
Subhash Chandra, Presiding Member—The present complaint has been filed by the complainant under section 21 of the Consumer Protection Act, 1986 (in short, ‘the Act’) alleging deficiency in service by the opposite parties in the settlement of an insurance claim.
2. The brief facts of the case, as stated by the complainant, are that it is engaged in the business of manufacturing and trading of drugs and pharmaceuticals products at its plant located near Indore. The complainant purchased a Form Fill and Seal (FFS) machine worth Rs.32.32 crores from M/s Anitas Exports Limited at Village Bhud, Baddi, Nalagarh, District Solan, Himachal Pradesh. A Marine Cargo Specific Voyage Policy was obtained with effect from 26.06.2010 against a premium of Rs.1,42,418/- for a total insured sum of Rs.32.32 crores for transportation by road. The operation of the policy was from the time the consignment left the warehouse (commencement of transit) and continued during the ordinary course of transit including customary transhipment, until delivery to the final warehouse of the destination named in the policy, until expiry of 7 days after the arrival of the vehicle at the destination town which ever was earlier. It is stated by the complainant that the truck carrying of the FFS reached the factory site on 02.07.2010 at 04.45 am and was taken inside the factory complex at 06.00 am. The unloading was done at 03.00 pm by a crane of M/s N B Crane Services (Crane no. GJ-10–D-0625). Around 03.30 pm, during unloading, the machine was damaged due to the movement of the truck. Opposite party no.1 was informed immediately at 03.40 pm. Around 05.10 pm a representative of opposite party no.1 along with surveyor undertook preliminary survey and recorded statements. Documents sought were handed over on 03.07.2010. A final surveyor was appointed by the opposite party on 09.07.2010 from Mumbai who visited the site on 10.07.2010. The complainant alleges that on account of the lethargic approach of the opposite party, the sophisticated machine could not be removed or taken for repairs, if any, and therefore, it issued a legal notice on 13.07.2010 which was replied to. The Surveyor of the opposite party, M/s Alok Shankar and Company, Mumbai, submitted a report dated 05.07.2011 admitting loss on account of carelessness and negligence on the party of the carrier/ crane operator and held the transporter/ crane operator responsible for the loss which was assessed at Rs.3,92,31,000/- after deducting Rs.1,30,77,000/- towards the difference in cost/ profit margin of about 25% of the gross assessed loss of Rs.5,23,08,000/- after deducting Rs.10,00,000/- towards salvage. The complainants made several efforts with opposite party no.1 to settle the claim. They also filed a Writ Petition no. 6252 of 2012 before the Hon’ble High Court of Madhya Pradesh at Indore (which was dismissed as withdrawn).
3. Complainant impugns the rejection letter dated 30.03.2012 issued by opposite party no.1 as being arbitrary and not being based on the surveyor’s report. It is submitted that the surveyor has recommended a net loss of Rs.3,92,31,000/- after various deductions without any mention that the accident occurred before termination of the contractual transit period. It is stated that the ground of rejection is contrary to the findings of the final report which states that:—
4. Loss/damage to the consignment is attributing to the carelessness/misconduct/negligence on the part of the carrier/ crane operator. Transports/ crane operator is responsible to make good the losses since damages were taken place when consignment was unloaded by them.
4. It is stated that the ‘duration’ clause under paragraph 5 of the insurance policy states clearly that the insurance covers the period from time the goods leaves the warehouse named in the policy for transit, until delivery at the final warehouse at the destination named in the policy, and in case of transit by road, until expiry of 7 days after arrival
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