NEW INDIA ASSURANCE COMPANY LIMITED Vs. J G M V COTTON TRADERS
HIGH COURT OF ANDHRA PRADESH
NEW INDIA ASSURANCE CO.LTD, BOMBAY
JAMILI GOPALA RAO, MADDALI VENKATESWARARAO COTTON TRADERS, GUNTUR
Click here to view full judgement.
G.Radhakrishna Rao -
(1.)The defendant in O.S.No.189 of 1978 on the file of the Subordinate Judge, Guntur is the appellant herein and the present appeal is preferred against the judgment and decree in O.S. No. 89 of 1978. Two fire insurance policies bearing Nos.128135832 and 128135833 which were valid upto 12-6-1978 were taken by the respondent-plaintiff from the appellant-insurance company and insured their stocks at M/s. Maddisudarshanam & Sons and M/s. Karpurapu Ramakrishna Murthy & Co., Ltd., under lease to Srinivasa Cotton and Oil Company and sub-leased to plaintiff-respondent. For further process viz., pressing work, the respondent used to shift the stocks to M/s. Sakambari Cotton Exports Private limited, Amaravathi Road, Guntur all along. Depending upon the stocks position of plaintiff-respondent at the three places, he used to arrange the transfer of insurance to adequately cover the stocks at the respective places within the insured limits. The practice alleged to have been prevailing is that in case the goods have been transferred from one company's godown to another company, the policy coverage can be transferred without paying any additional premium. In the instant case, a claim for Rs.2,56,410/- was made by the respondent on account of fire accident of the goods that took place on 16-5-1978 at the premises of M/s Shakambari Cotton Exports Private limited. The claim of the respondent - company is merely based on the custom and practice that was being adopted by the insurance company in connection with the goods that were transferred from one place tp another.
(2.)The plaintiff-respondent's case is that on 15-5-1978 they have sent two letters under certificate of posting intimating the insurance company to arrange for transfer of insurance of goods to cover the stocks lying in the premises of M/s. Shakambari Cotton Export Private Limited and plaintiff-respondent was expecting as usual the endorsement of transfer with effect from 15-5-1978. It is stated that the aforesaid letters were received by the appellant on 18-5-1978 and so since the accident took place after the posting of letter or intimating the authorities concerned through post which ought to have been accepted with effect from 15-5-1978 and the rejection of the claim by the insurance company on the ground that they have received it on 18-5-1978 is bad.
(3.)For the determination of the coverage of policy the crucial point is whether any attempt has been made on 15-5-1978 to intimate the insurance company about the transfer of goods and whether it has got effect to from 15-5-1978 or gives right to the party-concerned to claim that any damage that was caused between 15-5-1978 and 18-5-1978 and that they are entitled to make the loss good,
Copyright © Regent Computronics Pvt.Ltd.