Insurance claims must be honored if the failure to accept goods is covered under the policy, despite alleged exclusions.

1. Heard Mr. Pragyan Sharma, Advocate, for the complainant and Mr. Bharat Sangal, Sr.Advocate, assisted by Ms. Babita Kushwaha, Advocate, for the opposite party.

2. M/s. Ghanta Creative Exports Private Limited (the complainant) has filed aforementionedcomplaint for directing M/s. Export Credit Guarantee Corporation of India (the opposite party) to pay (i) insurance claim of Rs. 2 crores along with interest @18% per annum, from the date of the claim, set up for the first time, (ii) suitable compensation for mental agony and harassment, due to deficiency in service, committed by the opposite party and causing loss of business and (iii) any other relief which may be deemed fit and proper, in the facts and circumstances of the case.

3. The facts, as stated in the complaint and emerged from the documents attached with thecomplaint, are as follows:
(a) The complainant was a company incorporated under Companies, Act, 1956 and engaged intrade and export of cotton and yarn. Export Credit Guarantee Corporation of India (for short the ECGC), is a public corporation, owned by Government of India and functions under the control of Ministry of Commerce. It is managed by a Board of Directors, representing the Trade and Industry departments of Government, Banks, Insurance Companies etc. Avowed goal of the ECGC is to protect the exporters from the losses, due to delay in shipment or the consignment being blocked for any political or commercial reason. For that purpose, the ECGC used to issue Insurance Policies to the exporters and Export Credit Insurance Cover to the banks to cover their risks in exporting goods to foreign buyers and for granting credit facility. Export Credit Insurance is designed to protect the exporters against payment risks, both political and commercial, subject to the terms and conditions of the contract of insurance.
(b) The complainant obtained Policy No. SCR - 0100002437, i.e. Shipments (Comprehensive Risks) Policy / Small Exporter’s Policy, for a sum of Rs. 2 crores, for the period of 20.6.2005 to 30.6.2007. The complainant entered into a Delivery against Acceptance Sale Agreement with M/s. Greenvill International Dhaka - 1000, Bangladesh on 4.3.2006, for export of Indian cotton. Under the Terms of the Policy, where any shipment is made under Delivery against Acceptance Sale Agreement, the policy holder has to get the credit limit approved by the ECGC. The complainant applied for approval the credit limit and submitted all the requisite documents. On being satisfied, the ECGC approved the credit limit on 15.3.2006 for the Delivery against Acceptance Sale Agreement dated 4.3.3006. Thereafter, the complainant exported the goods of INR20771398.34, in two consignments dated 29.3.3006 and 1.4.2006, from Visakhapatnam to Chittagong port, Bangladesh, through M/s. German Express Shipping Agency (India) Pvt. Ltd.
(c) It is alleged that Uttara Bank Ltd. Bangladesh was the banker of M/s. Greenvill International Dhaka under the contract of Export. UTI Bank (now Axis Bank) was the banker of the complainant. When the consignment reached at Chittagong port, the Invoices were sent to Uttara Bank Ltd., but it has refused to accept the consignment and asked to return it. Uttara Bank Ltd. Bangladesh wrote a letter dated 25.4.2006, in this respect to UTI Bank.
(d) As soon as the complainant came to know about the aforesaid letter, the complainant inquired about other buyer in Bangladesh and found out one M/s. Rony International, who agreed to take the goods on low price and make payment. The complainant wrote a letter dated 3.5.2006 to the Branch M