The National Consumer Commission has directed an insurance firm to pay Rs3.85 crore with interest to a Navi Mumbai-based shipping firm for rejecting a claim earlier stating that the survey was not done by a licensed person and that the experienced people expected to be on board the ship were not present. The commission stated that there was an interim report, which the insurance firm had not challenged which proved that the licensed person had done the valuation. With respect to an experienced person not present, the commission said that the insurer could not prove the same.
The order was passed on August 29 on a complaint by Navinya Shipping Services Pvt Ltd., Navi Mumbai, against IFFCO-Tokio General Insurance Co Ltd.
Navinya had taken 'Marine Hull Insurance Policy' for its vessel 'Coastal Pride' for a sum assured of Rs4 crore. In June 2015 when 'Coastal Pride' sailed from Porbandar Port with 1960 metric tonnes of cement, it drifted due to adverse weather. As engines had stopped, the Master of the vessel informed the insurer about the problem who in turn stated that a tug would come to move the vessel. However, due to bad weather, it could not come and eventually the Indian Navy had to save all the people on board the vessel.
When the claim was made, the insurance company repudiated it citing several reasons. It said that appointment of master led to total loss because he was not aware of method handling the navigational equipment and Navinya had not directed the master/crew to act prudently to save the voyage. After talks when the claim was not made, Navinya filed a complaint with the Commission.
The commission said that the repudiation was illegal and amounted to deficiency in service and directed the claim amount to be given.
