Consumer court directs insurance firm to pay Rs 1.65 crore to ship owner

The Cuddalore district Consumer Disputes Redressal Commission has directed United India Insurance Company to pay Rs 1.65 crore to the complainant for a cargo sailing vessel, along with 9% interest. The commission also ordered the payment of Rs 1 lakh for service deficiency and wrongful termination of the marine insurance policy, as well as Rs 10,000 as litigation costs. The complainant had obtained a hull machinery marine insurance policy and paid a part premium of Rs 46,064. The vessel sank along with its cargo due to adverse weather conditions. After a survey assessment, the insurance company rejected the claim, but the commission found the rejection to be arbitrary and unfounded.