The local district consumer disputes redressal commission has directed National Insurance Company Limited to pay ₹4.96 lakh to Anantha Padmanabha Rao of Derebail for damage to the latter’s mechanised fishing boat. The Dakshina Kannada District Consumer Commission on August 23 asked the insurance firm to pay the amount along with interest of 9% per annum. It also directed the firm to pay ₹25,000 as compensation and ₹10,000 towards cost of the litigation.
Mr. Rao’s boat “Sea Master” met with an accident near the estuary in Bengre in Mangaluru on August 29, 2017. Following a report by insurance firm’s surveyor, the Divisional Office of National Insurance Company based in Udupi agreed to settle the claim for sum of ₹40 lakh plus ₹1.96 lakh towards salvage expenses. Instead of paying ₹41.96 lakh, the divisional office paid ₹37 lakh by deducting ₹4.96 lakh.
Mr. Rao said he received the amount under compelling circumstances on December 20,2018 and immediately sent a letter to the insurance firm asking basis for arriving at ₹37 lakh. Mr. Rao issued a legal notice to the firm and filed complaint with the commission demanding ₹4.96 lakh.
The National Insurance Company contended before the Commission that ₹3 lakh towards salvage cost was deducted as Mr. Rao wanted to retain the salvage. Mr. Rao has not salvaged the vessel and abandoned it and hence the firm further deducted the sue and labour charges of ₹1.96 lakh. Upholding the claim for ₹4.96 lakh, the three-member commission headed by president K. Prakasha in its judgement referred to observations in Sea Master’s Marine Hull preliminary report and in the inspection report by Delta Marine Services.
The two reports said no salvage contractors came forward to salvage the vessel. Though three scrap dealers came forward to purchase the vessel, it has not gone through as insurer did not approve it and there may be nothing available for salvage, the Delta Marine Service’s report said. Therefore, the commission noted, insurer’s defence that they deducted ₹3 lakh of salvage value as Mr. Rao wanted to retain salvage does not hold water. Denial of ₹3 lakh and further deduction of ₹1.96 lakh amounted to deficiency of service, the commission said.