ORDER
M.B. Shah, J. (President)
1. By judgment and order dated 19.6.1998 the District Consumer Disputes Redressal Commission, East Godawari at Kakinada allowed O.P. No. 196/1996 and directed the petitioner. New India Assurance Co. to pay a sum of Rs. 43,000 with interest at the rate of 18% p.a. from 12.9.1994 till the date of realisation and also Rs. 2,000 towards costs. The District Forum, arrived at the conclusion that the complainant had taken marine insurance policy for the period between 15.2.1994 and 14.3.1995;; complainant sent 120 bags of sago by lorry bearing registration No. AAP 1159 on 17.5.1994 from factory premises to the railway goods shed, Samalkota; during the transit the agitators of Kapa Porata Samithi set afire the vehicle; the lorry as well as the stocks was completely damaged; an FIR was registered; a survey was conducted and the Surveyor submitted his report. However, by letter dated 2nd November, 1994 the claim was repudiated. The District Forum negatived the contention of the Insurance Company that the insured failed to declare all the despatches as required by the terms and conditions of the open Marine Insurance Policy and directed it to pay the sum as stated above.
2. On the basis of the terms of the insurance policy, First Appeal No. 648 filed by the Insurance Company was dismissed by the State Commission by order dated 17.12.1999. Hence, this revision petition by the Insurance Company.
3. Admittedly a Marine Insurance Policy (Cargo) is taken by the complainant Mills, which, inter alia, provides as under;
Mode of conveyance: By Road.
Subject matter insured On consignments said to contain starch packed in new single gunny bags and declared for insurance as and when despatched. The maximum value of each consignment despatched by road shall not exceed Rs. 1,00,000.
Risks covered: Road Risks, TPND (Theft, Pilferate, Non-delivery) and SRCC (Strike, Riots, Civil Commotion).
Period of Insurance: 15.3.1994 to 4.3.1995.’
Amount Insured: Rs. 5,00,000.
Special conditions and warranties; Warranted that the goods carried by Road are fully covered with serviceable tarpaulins duly tied up. This policy is subject to Inland Road trans Clause-B. TPND and SRCC Clause and Open Policy conditions attached hereto.
4. Further, the relevant conditions having some blanks upon which reliance has been placed by the petitioner are as under:
(1) Declaration: It is a condition of this insurance that the assured is bound and will declare each and every despatch coming under the scope of the policy without any exception within 24 hours from the time of the issue of the Railway/Goods/ receipt to the company’s office at… in the printed declaration form supplied.
(2)…
(3)…
(4) Policy Period: This policy is to remain in force for a period of 12 months from…………..to……………unless sum insured is previously exhausted by declarations.
(5)…
5. Reliance is also placed by the Insurance Company on the extract prepared by the Chartered Accountant of the Insurance Company based on the account books of the petitioner to establish that on the date of the incident there was no insurance coverage as complainant had transported goods worth more than Rs. 12 lakhs.
6. The learned Counsel for the insured submitted that petitioner has taken insurance policy covering the risk in case where the goods are transported by road and that insurance coverage would be applicable only on the consignment said to contain stock in (a) new gunny bag and (b) declared for insurance as and when despatched. The maximum value of each consignment despatched by the road shall not exceed Rs. 1 lakh. He also submitted that all throughout in the insurance policy mode of conveyance is repeatedly stated to be ‘by road’ and consignments sent by road are covered by the insurance if declared to the Insurance Company.
7. In our view the aforesaid submissions of the learned Counsel for the complainant requires to be accepted. There are specific terms in the insurance policy as stated above to the effect that insurance coverage would be applicable in case where goods were transported by road. Not only this, at the time of transport it is required to be declared for insurance and information is required to be sent to Insurance Company. The extract of books of accounts upon which reliance is sought by the Insurance Company reveals that major part of the goods were transported by the railways and not by road and for said transport no such declaration was sent to the Insurance Company. Even the Clause (4) upon which reliance is placed specifically provides that “unless the sum insured is previously exhaustedby declaration”. This is admittedly not established.
8. Hence, it cannot be said that the order passed by the District Forum as affirmed by the State Commission is in any way erroneous. In the result, the Revision Petition is dismissed. The petitioner to pay costs quantified at Rs. 2,500.