New India Assurance Gets Rs 1,430 Crore Relief From IRDA

The Insurance Regulatory and   Development Authority of India has provided relief to the New India Assurance from a big insurance claim of Rs 1,430 crore from Nectar Life Sciences.

The pharma corporation had bought a marine shipment transit cover from New India Assurance, under Open Marine cargo for Rs 1,430 crores for the period of June 6, 2012, to June 5, 2013. Nectar     Life Sciences has received an order for the supply of a consignment of 80 drums carrying 14,400 kg of menthol, which was to be delivered to Fuyang City, China. It was to be ported via Nhava Sheva Port in Maharashtra and dispatched from their premises at Dera Bassi.

The regulator said that the company informed the insurer that the consignment reached Nhava Sheva, Mumbai, which turned out to be untrue because the stated container remained on the board of the affected vessel and sailed to China.

“Considering the facts and circumstances, it is confirmed that the loss did not occur due to fire in the ship, but due to delays in transit, which is an exclusion under the policy,” said Irda in its report. “The Authority exercising the powers under section 64 UM (3) of Insurance Act, 1938 hereby decides not to appoint a second surveyor in this case.”

IRDA, after going through the submission of each event, stated that the damaged goods did no longer return to Nhava Seva Port, Mumbai after the fire accident. As an alternative, it sailed to Shanghai, China en route Srilanka. The products were unloaded in Shanghai port for shipping. The purchaser refused to take the transport of goods. The products were returned to the manufacturing unit premises.

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