KARNATAKA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, BENGALURU
K.B. Sangannanavar, Pri. Dist & Session Judge (R) - Judicial Member and M. Divyashree, Lady Member
Manipal Technologies Ltd. – Complainant
versus
Bajaj Allianz General
Insurance Co. Ltd. – Opp. Party
CC No.82 of 2011
Decided on 1.10.2024

Headnote:

Consumer Protection Act, 1986 – Section 12 – Insurance Policy – Marine Insurance Open Cover Policy – Claim settlement in respect of value of consignment in sum of Rs. 52,74,341/- with interest @ 12% p.a. from date of repudiation till realisation – Complainant had sent shipment under All Risk Insurance & as Complainant had consigned goods by way of Marine Insurance Open Cover Policy Export covering transit sent 15 shipments in respect of Marine Transit export policy – Surveyor observed that damage may have occurred because of loading of books when packaging was warm – Marine open cover all risks policy covers all such contingencies which is not denied by insurer – Report in so far as it exonerates OP from liability due to faulty and tight packing of books has to be held incorrect or not justified – OP cannot attribute any error or negligence on part of Complainant in ensuring safe passage of books considering their experience of having shipped several tons of books over several years which is not denied by insurer – OP rendered deficiency in service in not settling 6 claims of Complainant amounting to Rs.52,74,341/- – OP directed to pay Rs. 52,94,341/- along with interest @ 12% p.a. from date of repudiation till realisation and pay Rs.1 lakh towards litigation cost within 60 days from date of receipt of this Order.

Held: Thus, from the above materials placed on record by the parties to the Complaint, admittedly the Complainant had sent shipment under All Risk Insurance and as the Complainant had insured consigned goods by way of Marine Insurance Open Cover Policy Export covering transit had sent 15 shipments in respect of Marine Transit export policy and in one of the claims we found the surveyor has observed that the damage may have occurred because of loading of the books when the packaging was warm. It is also not in dispute that the consignments were placed in moist conditions, which could be borne from 15 consignments. It is to be noted herein that the Complainant had registered six transit claims against 15 consignments. In other words 9 consignments have reached the consignee and there have been no complaint and all these 9 consignments have the same type of packing and the insured/complainant repeatedly stated the insurance obtained is an All Risk Cover, which covers any eventuality during transit. It is also found from the enquiry, OP had failed in its duty in not making payments under invoice no.150, 127 & 143 as the surveyor has not sent any report regarding damage. The Marine Open Cover All Risks policy covers all such contingencies which cannot be denied by the insurer herein. It was also informed to the insurer and it has come in the enquiry that Complainant is not new to these types of consignment, since, has been in this business for over a decade and has not received any complaints about defective packing till date which is not denied by the insurer. In such circumstances, the report in so far as it exonerates the OP from liability due to faulty and tight packing of the books has to be held in correct or not justified. As already stated above, even surveyor also found, damages caused to the books have occurred during transit was not considered by the Surveyor. Further to be noted herein out of 6 consignments, 3 consignments, transit claim has been rejected, also substantiates, packing was not defective. Therefore the reason given for rejection of the claim on the ground packing was defective could be said not justifiable and could also be said non settlement of the accepted claim is held illegal. In respect of other 3 claims as already stated above no survey has been done and this impliedly means that the claim of the Complainant in respect of these 3 claims under invoice nos.150, 127 & 143 has been accepted by the OP. It is therefore, we are of the view that rejection of the claim of the Complainant in respect of invoice nos.138, 151 & 152 have to be held unjust and similarly non-settling of the claim in respect of invoice nos.127, 143 & 150 for the reasons stated above could be held not justifiable under law as per terms and conditions of the policy in question. Upon examination of the materials placed on record by the parties, viewed from any angle, OP cannot attribute any error or negligence on the part of Complainant in ensuring safe passage of the books considering their experience of having shipped several tons of books over several years as informed in Ex-C19 dtd.21.10.2010 which is not denied by the insurer, as such in our view, it goes without saying that OP had rendered deficiency in service in not settling 6 claims of the Complainant amounting to Rs.52,74,341/-, since, OP has not disputed the claim of Rs.31,99,841/- in respect of invoice no.127, Rs.3,78,000/- each in respect of invoice nos.138, 150, 151 & 143 and Rs.5,62,500/-, in respect of invoice no.152. In such conclusion of the matter, we are of the view that OP is liable to pay the value of the consignment in a sum of Rs.52,74,341/- and since OP has failed to settle the claim under 6 invoices is liable to pay interest thereon from the date of repudiation till realisation at 12% p.a. for simple reason that the complainant is Printer is engaged in this business since decade and had the amount under claim was invested in their business would have earn even more that the interest now determined to be payable by insurer. Further, it has come in the enquiry that Complainant had incurred expenses of Rs.10,000/- and similar such amount towards incidental expenses, which also to be considered while passing the award. Accordingly, we proceed to allow the complaint and directed OP to pay Rs.52,94,341/- along with interest at 12% p.a. from the date of repudiation till realisation and do pay Rs.1 lakh towards litigation costs within 60 days from the date of receipt of this order, failing which, the amount so awarded shall also carry interest at 9% p.a. from the date of default till realisation.(Para 12)

Result: Complaint Allowed.