Chennai: Insurer to pay Rs 2.49 crore to cashew importer for rejecting claims
Vibu Ventures, represented by partner N Balakrishnan of Anna Nagar, imports raw cashews and other commodities from African countries
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CHENNAI: The Chennai North District Consumer Disputes Redressal Commission has directed New India Assurance Company Limited to pay Rs 2.49 crore, with 9 per cent annual interest, to Vibu Ventures for damage to five consignments of raw cashew nuts imported from Africa. The commission also ordered the insurer to pay Rs 10 lakh as compensation for deficiency in service and Rs 10,000 towards litigation costs.
Vibu Ventures, represented by partner N Balakrishnan of Anna Nagar, imports raw cashews and other commodities from African countries. The firm procures consignments shipped in bags by container through sea, rail, or road to its designated warehouse in Thoothukudi. It had obtained a Marine Cargo Open Cover policy from New India Assurance for one year upon paying Rs 16,929, covering transit from the origin warehouse to the final warehouse.
In December 2023, five shipments arrived at Thoothukudi and were temporarily stored at SANS CFS, a warehouse used to ease port congestion, until customs clearance. Heavy monsoon rains flooded the facility, damaging all five consignments before they reached the complainant’s warehouse.
Two surveyors assessed the loss. The importer’s surveyor estimated Rs 2.37 crore in damage plus Rs 12 lakh in salvage and incidental expenses, while the insurer’s surveyor claimed no liability under the policy. After the insurer repudiated the claim, Vibu Ventures approached the commission seeking Rs 2.49 crore in damages, Rs 25 lakh for loss of business and capital, and Rs 1 lakh in costs, with 18 per cent interest.
Commission president D Gopinath and members V Ramamurthy and Kavitha Kannan ruled there was a clear deficiency in service. They ordered the insurer to settle Rs 2.49 crore with 9 per cent interest from the date of repudiation in 2024 until realisation, along with Rs 10 lakh compensation and Rs 10,000 litigation costs, within two months. Failing this, the compensation will also accrue 9 per cent interest from the date of the order until payment.
