Gujarat State CDRC – Open Marine Cargo Policy 

Judgment dated 29.3.2023 – Gujarat State Consumer Disputes Redressal Commission, Ahmedabad –

Open Marine Cargo Policy – Out of 5220 rice bags,  1422 were damaged and 22 were missing during transit of sea transportation – Unless there is concrete proof of “existence of excluded peril” the claim under All Risk Policy is to be admitted – Repudiation of claim for loss is illegal

The complainant – export and import firm – had taken Open Marine Cargo Policy (All Risk Policy) in 2013-2013 for annual turnover of total consignment value of Rs.7 crores.  On 23.9.2013, the insured goods of 5200 bags of non-basmati rice was declared for shipping from Kolkata to Madagascar and insurance cover of Rs.81,70,791.20 ps was declared.

The consignment sustained damage during transit and loss was intimated.

The Surveyor reported that 22 bags were missing and 1422 bags were damaged due to infiltration of water through rusted roof,  amounting to loss of Rs.22,12,717.32 ps.  The Surveyor did not raise any doubt for packing of the bags.  However, the Insurer repudiated the claim for non-coverage of cause of loss in the policy vide letter dated 3.2.2014.

The State Commission noted that two sets of documents under the signature of same officer of Insurer were issued.   It was observed that the version beneficial to the insured would be accepted.   It was found that the Surveyor had no concrete reasons to frame his opinion but it was presumed it might be because of excluded perils.  It was held that where cause of loss is not certain and when more than one probabilities is available, a peril in exclusion clause should be avoided unless proved by concrete evidence.  It was, therefore, held that the loss was covered by the policy.   The complaint was partly allowed.

Consumer Complaint No.217 of 2014 – Thakkar Exim Vs. Tata AIG Gen. Insurance Company Limited