NATIONAL INSURANCE CO. LTD. versus SKY GEMS

NATIONAL INSURANCE CO. LTD. versus SKY GEMS

Since the title to the goods had not passed to the consignee and the respondent-consignor remained the owner with insurable interest, payment of insurance claim must be effected in Indian currency, not Pounds Sterling, despite the policy stating claim payable at London.

Parties
Appellant: National Insurance Co. Ltd.; Respondent: Sky Gems
Jurisdiction
India
Judgment Date
09 January 2002
Procedural Posture
Civil Appeal / Final Disposition by Supreme Court
Outcome
Appeal allowed in part; cross-appeal dismissed.
Legal Topics
Insurance Claim Settlement, Contract of Sale CIF Terms, Mode of Payment Under Insurance Policy
Insurance Law International Trade Law Insurance Claim Settlement Contract of Sale CIF Terms Mode of Payment Under Insurance Policy

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Parties

National Insurance Co. Ltd.

Appellant

Sky Gems

Respondent

Procedural Posture

Civil Appeal / Final Disposition by Supreme Court

Legal Issues

  1. 1 Whether the respondent-consignor is entitled to receive insurance claim payment in Pounds Sterling or Indian currency.
  2. 2 Effect of untransferred title in goods on insurance claim payment currency under CIF contract.

Ratio Decidendi

Since the title to the goods had not passed to the consignee and the respondent-consignor remained the owner with insurable interest, payment of insurance claim must be effected in Indian currency, not Pounds Sterling, despite the policy stating claim payable at London.

Court Disposition

Appeal allowed in part; cross-appeal dismissed.

Orders

  • Direction to pay the amount in Pounds Sterling set aside.
  • Respondent entitled to Rs. 28,30,000 with interest @ 18% from date of claim till payment.