Insurance – Robbery of diamonds – Repudiation for Breach of Warranty
The consumer complaint was filed for Rs.55,04,8518.05 of insurance claim and with interest.
The complainant firm carrying on export & import of precious stones / jewellery, is manufacturer of gold and diamond studded gold jewellery. The goods are stored at secured premises and at the stores or in trade fairs in California, New York and Belgium.
The complainant had taken special contingency insurance from the respondent.
The relevant conditions of policy applicable on purchase in USA and Belgium are contained in clause (2) all sales and purchases abroad would be immediately intimated in writing to the Insurer and (7) the goods be kept secured and certified vaults.
The complainant had purchased goods worth US$ 1135021 vide Invoice dated 13.12.2001 from B&B Imports, San Francisco, California and kept the parcel in the premises & vault of B & B Import taken on lease.
On 4.2.2022, there was armed robbery and the goods were looted. There was delay of 15 days in informing the robbery to the Insurer. Moreover, during police investigation, the police actually verified that there was no surveillance camera in the building and no security personnel on duty at the time of robbery.
On 9.4.2003, the Insurer repudiated the claim for breach of warranty and delay in giving information of robbery. Therefore, the complainant filed the consumer complaint.
Breach of warranty discharges the insurer from the liability. The automatic consequence of a breach of warranty is discharge of the insurer’s liability. Such discharge of liability does not require express conduct or representation from the insurer.
In view of this, the complaint was dismissed.
Order dated 15.10.2024 of National Consumer Disputes Redressal Commission in Consumer Case No.24 of 2004 of Raja Gems Vs. United India Insurance Company Ltd.
