Case Law Details
Brief:- The Supreme Court has dismissed the appeal of New India Assurance Company which had rejected the claim of a ship-breaking firm for compensation. The firm bought a Belgian vessel and was bringing it from Singapore on its ‘funeral voyage’ to Alang port in Gujarat for demolition. It wrecked on way in high seas due to bad weather. The ship was covered by marine insurance and the ship-breaker invoked the policy. The insurer rejected the claim leading to litigation in the consumer forum. The National Consumer Commission asked the insurance company to pay Rs 14 crore with 9 per cent interest to Priya Blue Industries, the scrap dealer in ships. However, the insurer appealed to the Supreme Court. It ruled that the loss suffered due to the ship wreck was properly assessed by the surveyors and the commission order was correct.
Supreme Court
The New India Assurance Company Ltd. Vs. Priya Blue Industries Pvt. Ltd.
Priya Blue Industries Pvt. Ltd Vs The New India Assurance Co. Ltd.
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