ORIENTAL INSURANCE COMPANY LTD. versus M/S OZMA SHIPPING COMPANY & ANOTHER

ORIENTAL INSURANCE COMPANY LTD. versus M/S OZMA SHIPPING COMPANY & ANOTHER

Once the insurance company’s own Surveyor certified the market value and the premium was paid accordingly, in case of total loss, the insurance company is liable to pay the entire insured sum. There was no concealment of facts by the insured; the National Commission’s decision to award Rs.21,50,000/- with interest is correct.

Parties
Appellant: Oriental Insurance Company Ltd.; Respondent No.1: Ozma Shipping Company; Respondent No.2: Another
Jurisdiction
India
Judgment Date
25 August 2009
Procedural Posture
Civil Appeal / Final Judgment on Appeal From National Consumer Disputes Redressal Commission
Outcome
Appeal dismissed with costs
Legal Topics
Marine Insurance, Valued Policy, Total Loss, Consumer Disputes
Insurance Law Consumer Protection Marine Insurance Valued Policy Total Loss Consumer Disputes

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Parties

Oriental Insurance Company Ltd.

Appellant

Ozma Shipping Company

Respondent No.1

Another

Respondent No.2

Procedural Posture

Civil Appeal / Final Judgment on Appeal From National Consumer Disputes Redressal Commission

Legal Issues

  1. 1 Whether the insurance company is liable to pay the entire insured sum for the loss of vessel and cargo
  2. 2 Validity of valuation and claim settlement under Marine Insurance Act, 1963

Ratio Decidendi

Once the insurance company’s own Surveyor certified the market value and the premium was paid accordingly, in case of total loss, the insurance company is liable to pay the entire insured sum. There was no concealment of facts by the insured; the National Commission’s decision to award Rs.21,50,000/- with interest is correct.

Court Disposition

Appeal dismissed with costs

Orders

  • Insurance company to pay insured amount of Rs.21,50,000/- with interest at 12% p.a. from 4th April, 1991 to respondent No.1 within six weeks from judgment communication.
  • Costs quantified at Rs.25,000/- to be paid to respondent No.1 within six weeks.