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SUBHASH CHANDRA
Dynametic Overseas Private Limited – Appellant
Versus
New India Assurance Co. Ltd. – Respondent
ORDER
This Consumer Complaint has been filed under the Consumer Protection Act, 1986 (in short, the ‘Act’) alleging deficiency in service in repudiation of an insurance claim in a Marine Cargo Specific Voyage Policy issued by the Opposite Party in respect of transportation of a cargo of Iron Ore fines in bulk.
2. The facts, in brief, as stated by the complainant, are that the complainant formerly registered as “R. Piyarelall International Private Limited., (RPIL)” for the business of import and export of Minerals, Food Grains and Consumer Articles, changed its name on 13.03.2015 to “M/s. Dynametic Overseas Private Limited”. A policy for consignment of 8,125 WMT of Iron Ore fines in bulk from Haldia Port (India) to one main port (China), commencing from 08.10.2013 was taken by it. The Iron Ore was loaded on the ship ‘M.V. Bingo’, on 08.10.2013 partly at Haldia (6000 WMT) and partly (2125 WMT) at Sagar Anchorage on 11.10.2013, in view of the limitation of loading of cargo vessels at Haldia Port due to draught issues. The Bill of Lading dated 11.10.2013 of the entire consignment of 8,125 WMT iron ore was issued and the vessel sailed the same day. The vessel, however, sank on 12.10.201
Marine Cargo Specific Voyage Policy – Insurer cannot be held liable for any loss or damage to insured cargo on account of negligence or fault of Master of ship.
The court held that seawater damage to steel bars was not excluded by the ROD Exclusion Clause in a marine cargo insurance policy, confirming insurer's liability under an all-risk coverage.
The ROD Exclusion Clause in a marine cargo policy does not exclude coverage for cargo damage caused by seawater contamination; such damage is compensated if it is substantiated by adequate evidence.
In a Marine Cargo Voyage policy, Motor Vessel if was not classified M.V. claim of insurance rightly denied.
Timely and accurate declarations for consignments are critical in marine insurance policies; failure to comply can validate an insurer's repudiation of claims.
The burden of proof lies with the insurer to establish a fundamental breach of the policy in order to avoid liability for an insurance claim.
The failure to comply with the Institute Classification Clause in marine insurance policies results in a fundamental breach, negating coverage for cargo loss.
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