Insurance law
Surya Sharma
(Querist) 02 March 2014
This query is : Resolved
I have a moot court competition in my University. The proposition is based on Insurance. I am not able to make out contentions from the side of the petitioner/complainant. Please help me out. Find the proposition below.
MOOT PROPOSITION
1. Bio Cos Pvt. Ltd., is one of Asia’s best cosmetic products company having its Head office and Ware House at New Delhi. It exports its products to several Asian, European and American countries. Majority of its exports to international buyers are through commercial shipping.
2. For exports, the company follows a standard procedure, which involves computerised packing of its products into containers, and the containers are then sealed through machines in the presence of state excise officials. These containers are then weighed on an electronic weighment bridge and loaded on to trucks for transporting to the Tughlakabad (Delhi) dry port which is around 50 km away from the warehouse. This whole process excludes any human interference. From there, the container corporation of India transmits the same to the Nhava Sheva port, Mumbai. There the containers are loaded on to Ships and sent to the ports of destination countries.
3. Bio Cos Pvt. Ltd. has taken a comprehensive marine insurance cover, both inland and international from Secure India Ltd., one of the leading insurance companies of India having its head office at New Delhi. While taking the policy, Bio Cos Pvt. Ltd. has submitted in the proposal form that it exports its products to international buyers on C.I.F. (Carriage, Insurance, and Freight) terms.
4. In January, 2013, Bio Cos Pvt. Ltd. entered into contract with Madara Ecocosmetics, a company based in Italy for sale of 10,000 packs of its products for Rs 1 crore. As per the contract, the goods were to be sent to the buyer on F.O.B (Free on Board) basis. It was further agreed that the insurance cover of the consignment will be taken by Madara Ecocosmetics.
5. Accordingly, Bio Cos Pvt. Ltd. packed the consignment of 10,000 packs into 10 containers of 1000 packs each and sent the same as per their standard procedure. The goods reached the designated port at Italy, where the agents of Madara Ecocosmetics took delivery. The seals of the containers were opened in their presence and the goods were taken out for counting and weighing. It was noticed that instead of 10,000 packs, only 7000 were there in the containers. The information regarding this shortage of consignment was shared with Bio Cos Pvt. Ltd.
6. To cover up the deficiency of original order, Bio Cos Pvt. Ltd. further sent 3000 packs to Madara. On enquiries and investigation, Bio Cos Pvt. Ltd. got to know that similar kind of shortages because of skilful theft have been reported in consignments sent by other exporters also. Thus, ascribing shortage in consignment to theft of the goods, Bio Cos Pvt. Ltd. also lodged a FIR with the local police. In FIR it was alleged that some of the truck drivers who are responsible for transporting goods from warehouse to dry port along with some unknown persons have conspired to commit theft of 3000 packs from the consignment. It was alleged that this theft has been affected by skilfully removing the seals to pilferage packs from containers and then the containers were artfully resealed. Acting on the FIR, the police also arrested some persons and recovered cash amount of Rs.10, 000 from their possession.
7. At the same time, Bio Cos Pvt. Ltd. lodged claim with Secure India Ltd. for the loss due to this theft of 3000 packs. In the claim form, Bio Cos Pvt. Ltd. has reiterated the facts regarding theft. It was submitted that as the marine insurance policy was in currency when the alleged theft took place, the insurance company is liable to indemnify Bio Cos Pvt. Ltd. to the extent of price of 3000 packs of goods. However, Secure India Ltd. has repudiated the claim on the ground that the insured i.e. Bio Cos Pvt. Ltd. was not having any insurable interest in the goods subjected to theft and also on the ground that it violated the policy condition by sending it on a F.O.B basis.
8. Argue from both sides i.e. on behalf of aggrieved, Bio Cos Pvt. Ltd. who has now approached you for instituting appropriate legal proceedings under Consumer Protection Act, 1986 against Secure India Ltd and then on behalf of defendant Secure India Ltd against Bio Cos Pvt Ltd. 3. The issues/ contentions need not be limited to one’s enumerated in the concluding paragraph of moot problem. Additional issues/ questions may be framed and raised.
Clarifications:
The insurance policy taken by Bio Cos Pvt. Ltd. from Secure India Ltd. is valid from 1st January 2013 to 31st December, 2014. The insurance policy covered within its ambit all exports done by Bio Cos Pvt. Ltd. during this period.
Devajyoti Barman
(Expert) 02 March 2014
Sorry, academic queries are not solved here.
Guest
(Expert) 02 March 2014
Borrowed knowledge cannot help to enhance your own knowledge and expertise to analyse the legal issues. Try yourself and learn effectively.
