Page 58 - Insurance Times March 2023

Insurance Caselaws

s business operations seek to attain pre- not based on ad hocism or vitiated by arbitrariness, then
A pandemic levels of growth, insurance is one the jurisdiction of the Consumer Forum to go further would
sector which could prove to be the pivot to
stop.
sustainability.
Ingredients of a Marine Insurance Policy?
Recent judicial interpretation rendered by Supreme Court
United India Insurance Co. Ltd.
to various principles of insurance law would prove to be a
v.
useful guide for both, Insurers/Insureds in matters relating
Levis Strauss (India) Pvt. Ltd.
to coverage.
Civil Appeal No. 2955 of 2022
What is the extent of jurisdiction of a
Policy type- Standard Fire & Special Perils Policy,
Consumer Forum to examine a surveyor’s
Stock Throughout Policy, All Risks Policy
report?
Khatema Fibres Ltd. The Supreme Court in the course of its judgment, inter-alia,
examined expressions under the Marine Insurance Act, 1973
v.
(“MI Act”), namely, marine adventure, maritime peril
New India Assurance Company Ltd. and Ors.
referred to in marine adventure and marine policy. It was
IV(2021)CPJ1(SC)
observed that Section 4 of the MI Act, deals with mixed
Policy type- Standard Fire and Special Perils marine and land risks.
In the instant case, the Supreme Court observed that in
It inter-alia, enables coverage - through express terms, or
cases where the insurance company admitted the insured’s
by usage of trade - extension of marine policies so as to
claim, to the extent of the loss as assessed by the surveyor,
protect the assured against losses on inland waters or on
the jurisdiction of the special forum constituted under the
any land risk which may be incidental to any sea voyage.
Consumer Protection Act, 1986 is limited. To establish
The Supreme Court relied on its earlier judgment in New
deficiency, the insured should be able to establish, that the
India Assurance Co. Ltd. v. Hira Lal Ramesh Chand and Ors.
surveyor did not comply with the code of conduct in respect
2008 (10) SCC 626, where it was held that an insurance cover
of his duties, responsibilities and other professional
extending 'warehouse to warehouse' meant that the
requirements as specified by the Regulations made under
consignments are covered by insurance not only during the
the Insurance Act, 1938.
sea journey, but beyond as stated in the policy i.e. during
transit from the time it leaves the consignor's warehouse
The Court finally held that a Consumer Forum which is
till it reaches the consignee's warehouse.
primarily concerned with an allegation of deficiency in
service cannot subject the surveyor's report to forensic In the instant case, since there was a warehouse-to-
examination of its anatomy. Once it is found that there was warehouse transit clause and certain other stipulations,
no inadequacy in the quality, nature and manner of which stated that the policy covers both marine and other
performance of the duties and responsibilities of the risks, the policy was held to be a marine insurance policy
surveyor, in a manner prescribed by the Regulations as to which comprehensively covered voyage, transit,
their code of conduct and once it is found that the report is transportation and warehouse perils. What is material is not

The Insurance Times March 2023 51