NCDRC asks insurance firm to pay Rs 1.9 cr to shipping company

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NCDRC asks insurance firm to pay Rs 1.9 cr to shipping company

New Delhi, Apr 6 (PTI) The apex consumer commission has asked an insurance firm to pay over Rs 1.93 crore to a shipping company whose claim towards damage of a vessel was rejected for not submitting its original logbook.

The National Consumer Disputes Redressal Commission (NCDRC) asked the New India Assurance Private Company Ltd to pay the amount to Ceyaki Shipping Private Ltd whose vessel got damaged on its voyage to Cochin from Tanzania.

“The failure of the complainant to produce the original logbooks and to explain the absence of date on the photocopies however, is not sufficient to reject the claim which otherwise has been verified by the surveyor appointed by the insurer who had access to the logbook of the vessel,” the apex consumer bench headed by its presiding member V K Jain said.

According to the complaint, during July 15-17, 2007, the vessel MV Comorin Pride encountered harsh weather which damaged its top deck besides electrical and steel damages on its forward portion.

Despite the damage, the vessel travelled with load to United Arab Emirates where it was inspected by the surveyor appointed by the insurance company, the complaint said.

The surveyor sent a final report to the insurance company on August 16, 2008 after all the repair works done at Sharjah, it said, adding that a class maintenance certificate and International Safety Management certificate was also submitted to the insurance company after repair works.

The insurance firm had denied the claim on various grounds like lack of proof submitted to substantiate the loss occurred on July 15-17 of 2007 due to non-submission of original logbook.

The firm also contended that the names on the safety certificates submitted were different as the vessel was sold after the incident.

The commission rejected the insurance firm’s contentions and said that the surveyor appointed by them inspected the vessel after the incident and he had access to the original logbook.

This is published unedited from the PTI feed.