Ginger Cargo Damaged During Transit, Delhi State Commission Holds Oriental Insurance Co., Involved Transit Companies Liable

Brief Facts:

The Complainant agreed to supply fresh ginger to Abdullah Marhool Alshamri, a buyer in Riyadh, Saudi Arabia. The supply was to be fulfilled using marine cargo which was insured by Oriental Insurance Company Limited (“Insurance Company”). The Complainant, after receiving the purchase order, arranged for the shipment of fresh ginger to Dammam, Saudi Arabia. Despite explicit instructions for the consignment to be transported in a reefer container with a temperature setting of 11 degrees Celsius, it was shipped at -11.1 degrees Celsius, leading to the ginger being frozen and damaged upon arrival. Furthermore, the Complainant's buyer refused to accept the damaged goods, resulting in financial losses and the cancellation of the supply contract.

The Complainant alleged negligence on the part of various transit and logistics companies which were involved in the said transaction. After the buyer denied accepting the goods, the Complainant submitted a claim with the Insurance Company for the damages. However, the claim was denied. Feeling aggrieved, the Complainant filed a consumer complaint in the State Consumer Disputes Redressal Commission, Delhi (“State Commission”).

The Insurance Company contended that the damage resulted from the Complainant's own negligence, citing a survey report indicating the temperature discrepancy. It argued that as the setting of the reefer container was undertaken before loading, the Insurance Company cannot be held liable. Additionally, they assert that the loading and packing were the responsibility of the Complainant and their agents, absolving them of liability.

Observations by the Commission:

The State Commission observed that the Complainant had purchased a Marine Cargo – Single Voyage Insurance policy from the Insurance Company to cover the consignment's transportation. The consignment arrived at its destination in a frozen and damaged state. The insurance claim was further repudiated by the Insurance Company. However, upon review, it was found that transit and logistics companies (Opposite Parties 2-6) were negligent in failing to maintain the required temperature during shipping, resulting in damage to the consignment.

Regarding the repudiation of the claim by the Insurance Company, the State Commission determined that its actions were unjustified as the consignment was insured from Delhi to Dammam, and the losses occurred during the voyage, rendering the Insurance Company liable for compensation. Therefore, the State Commission directed the Insurance Company to reimburse the insured amount (Rs. 29,03,244/-) to the Complainant along with interest and also ordered Alvares and Thomas, One World Lines, Transit Logistics and Maersk Lines (Opposite Party no. 2 to 6) to pay additional compensation of Rs. 2 Lakh for mental agony, harassment, and Rs. 50,000/- for litigation costs.

Case Title: Mr Amjad Hussain vs The Oriental Insurance Company Ltd. and Others

Case No.: Complaint Case No. 550/2016

Advocate for the Complainant: Mr Manoj Khanna and Mr Rohit Dhingra

Advocate for the Respondent: Mr B.S. Arors and Mr Mohit Arora (For the Insurance Company)

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