Case Title: Mr Amjad Hussain vs The Oriental Insurance Company Ltd. and Others
Case No.: Complaint Case No. 550/2016
In a recent verdict by the Delhi State Consumer Disputes Redressal Commission, the Oriental Insurance Company Limited was found accountable for illegitimately denying a valid claim for a damaged marine cargo of gingers. The commission includes esteemed Justice Sangita Dhingra Sehgal, Ms Pinki, and Mr J.P. Agrawal. The insurance firm has been ordered to pay back the claim amount, plus interest. Additionally, the transit companies involved in the damage were also judged negligent and directed to pay a fine of Rs. 2 Lakh.
The case came to light when the plaintiff, Mr Amjad Hussain, was contracted to supply fresh ginger to a buyer in Riyadh, Saudi Arabia, using marine cargo insured by the Oriental Insurance Company Limited. Despite specific instructions for a reefer container at 11 degrees Celsius, the cargo was mistakenly shipped at -11.1 degrees Celsius, causing the ginger to freeze and spoil. The buyer refused the damaged goods, leading to a financial loss and cancellation of the contract for Mr Hussain.
Mr Hussain accused the transit and logistics companies involved in the transaction of negligence. After the buyer refused the damaged goods, he filed a claim with the insurance firm for the losses. The insurance firm, however, denied the claim.
The insurance company argued that the damage was due to Mr Hussain’s own negligence, pointing to a survey report that highlighted the temperature inconsistency. They maintained that they could not be held responsible as the setting of the reefer container was finalized before loading. They further argued that packing and loading were Mr Hussain’s responsibility, hence freeing them from any accountability.
The commission, after reviewing the case, found that Mr Hussain had indeed procured a Marine Cargo – Single Voyage Insurance policy from the insurance company for the transportation of the consignment. It arrived at its destination in a spoiled state due to incorrect temperature settings during transit. The commission also found the transit and logistics companies negligent for failing to maintain the required temperature during shipping, leading to the damage.
On reviewing the insurance firm’s denial of Mr Hussain’s claim, the commission concluded that their actions were baseless. Since the consignment was insured from Delhi to Dammam, the losses incurred during the voyage made the insurance company accountable for compensation. The commission, therefore, ordered the insurance company to reimburse the insured amount (Rs. 29,03,244/-) along with interest. Additionally, they directed the transit and logistics companies, Alvares and Thomas, One World Lines, Transit Logistics, and Maersk Lines, to pay an additional compensation of Rs. 2 Lakh for mental distress and Rs. 50,000/- for legal costs.
This verdict underscores the importance of insurance companies honouring their policies and the responsibility of transit companies to adhere strictly to shipping requirements. It’s a reminder that when a consumer purchases a service, they have the right to expect that service to be carried out correctly and to be compensated when it is not.
