Repudiation of Marine Hull Insurance Claim for Unqualified Master, Territorial Breach
Judgment dated 29.9.2026 of National Consumer Disputes Redressal Commission in NC/FA/121/2022 ofOriental Insurance Co. Ltd Vs. Vijay Kantilal Sanghvi with connected matter.
The State Commission allowed the claim for loss caused to the sunk vessel covered by the Marine Hulk Policy taken at Jamnagar. The vessel is a Motor Tug named KB-1 of 195 BHP that was manufactured in 1999 and was registered with the Registrar of Shipping at Jamnagar, Gujarat.
The policy provided for a trade warrante for the vessel operation at Karaikal Port. The policy was made available for operation in the geographic limits of Karaikal Port, Pondicherry.
The condition prescribed with the said policy is that vessel has to proceed to and from any wet or dry docks, harbours, ways, cradles and pontoons within the limits specified in this insurance policy. It covers the perils of the sea and navigable waters and other hazards with limitations, the details whereof need no reference at this stage.
The status of the vessel and its description and the geographical limits within which the vessel was to operate as per the policy was Karaikal Port,
According to the Appellant/Insurance Company, the vessel had obtained a towing permission on 16.10.2007 that mentions the journey of the vessel from Puducherry to Cuddalore for towing a Dumb Barge KB-V. The permission from the Puducherry Port Authority was also issued on a licence known as the Harbour Craft Licence issued for the said vessel.
According to the Appellant/Insurance Company, the vessel had obtained a towing permission on 16.10.2007 that mentions the journey of the vessel from Puducherry to Cuddalore for towing a Dumb Barge KB-V. The permission from the Puducherry Port Authority was also issued on a licence known as the Harbour Craft Licence issued for the said vessel. The vessel departed from Jamnagar and the Certificate of Departure dated 17.10.2007 refers to the name of Master of the vessel as Mr. Abdul ■ Shaikh. The work of tugging the barge was under a specific contract from the Design and Construction of Marine Terminal Facility at Cuddalore. The work order has also been placed on record. The vessel under the contract had to be tugged to Cuddalore from Karaikal under the terms and conditions of the contract. The Certificate of Entry at Cuddalore Port has been filed on record which is dated 19.10.2007 where also the name of the Master of the vessel is mentioned as Mr. Abdul Shaikh. While performing the said job the vessel sunk. The Insurance Company appointed M/s Admire Marine Services Pvt. Ltd. as the Preliminary Surveyors who tendered their report on 24.12.2007. The Final Survey Report was tendered on 19.08.2009.
The Insurance policy is a Marine Hull Policy with a trade warranty that it shall be governed according to the Port conditions of Karaikal, Pondicherry. The vessel had to proceed to and from the navigation points as specified in terms of the Insurance policy. It is evident that the contract was obtained by the Respondent/Compiainant for towing of a Dumb Barge from Puducherry to Chennai by the Ministry of Shipping, Road Transport and Highways Department on 16.10.2007. The possession of a Port Licence is essential that was issued under the Pondicherry Port Harbour Craft Rules, 1970 to the Respondent/Compiainant, mentioning the name of Mr. Musraf Gazi for operating at Pondicherry subject to the Pondicherry Port Harbour Craft Rules, 1970. However, when the vessel actually negotiated the waters, according to Mr. Gola, it had travelled beyond its territorial jurisdiction to Cuddalore with one Mr. Abdul Shaikh as the Master of the vessel. The Certificate of Departure dated 17.10.2007 is already on record as Annexure P-5. The Certificate of Entry at Cuddalore Port dated 19.10.2007 is also filed as Annexure P-8 which records the arrival at Cuddalore Port with Mr. Abdul Shaikh as the name of the Master. It is while arriving in the Cuddalore Harbour area that the vessel sank between 12.00 and 12.30 p.m. on 15.12.2007. Intimation was given to the Appellant/Insurance Company and M/s Admire Marine Services Pvt. Ltd. were appointed to conduct a Preliminary Survey.
We have also perused the written submissions that have been filed on behalf of the Respondent/Complainant and we find that all the three grounds of repudiation are clearly established on record. The vessel was operating outside the territorial limits of Karaikal which is a pre-condition for the purpose of coverage under the policy. It is also evident that requisite orders from the competent authority do not seem to be available and the vessel was being manned by Mr. Shaikh who was not possessed of the requisite qualified experience of 5 years. The Certificate dated 29.09.2008 that was relied on which is after almost 9 months of the incident did not suffice as the experience of Mr. Gazi on that date was only 4 years. The name of the Master of the vessel in the licence/permission was that of Mr. Gazi but an altogether different person Mr. Shaikh had been negotiating the vessel who was not possessed of the qualification. The licence of Mr. Gazi in no way comes to the aid of the Respondent/Complainant and consequently the findings recorded by the State Commission cannot be sustained.
