Vanishing Cargo, Fake Licenses, and the Fight for a Fair Settlement-Case Study on Non-Delivery of the Entire Consignment

Project Summary:

Claimed Amount: 14.94 lacs
Date of Loss: 31st July,2023

Challenges

Insurance co has repudiated the above claim stating the reason that DL of the driver found invalid at the time of loss and adequate steps & reasonable care to verify the DL was not carried out before giving the permission to carry the consignment by the Driver which was negligence on the part of Insured. Hence the claim was deemed inadmissible.

Background of the Claim

A transport company was engaged for the transportation of TMT Bars to the consignee’s place at Ranchi (Jharkhand) dated 30th July, 2023, where the details of the consignment were shown. The consignment was handed over to the carrier for safe delivery of cargo at the place named in the consignment note, but the same was not delivered to the consignee.

Brief Details of the Claim

Accidental failure of the coupling ring part no. 490 and this accidental failure had happened due to presence of foreign particles and dirt into the lubricating chamber resulting blockage of lubricating pump port and affect was gearbox running at high speed got overheated, rubbed and eroded which resulted in the failure/ cracking of the coupling ring which has been attributed to all subsequent damages to the assembly.

Unique Features of the Claim

The driver did not possess valid driving documents. This should not be cause of repudiation of the claim as per marine cargo insurance.

Salasar's Input

1. It may be appreciated that after handing the goods over to the Carrier the insured did not have any control over the goods and it is difficult for the insured/consignor to verify the authenticity of each and every vehicular document presented before them by the driver of the vehicle. The cargo disappeared after commencement of transit and according to the Carrier, the driver of the vehicle might be responsible for loss of consignment. The Carriers lodged a FIR under IPC of sections 406/407/420/120B against the driver of the vehicle.

2. It appeared that a ghost vehicle arrived at the insured's place with fake DL and disappeared after loading of cargo, which was not anticipated by insured/consignor. We presented before insurance company/surveyor the Clause 10.2 of ( Change of voyage) Institute Cargo Clauses as a reference where it is stated that, “ Where the subject matter insured commences the transit contemplated by this insurance (in accordance with the clause 8.1) but without the knowledge of the assured or their employees the ship sails for another destination, this insurance will nevertheless be deemed to have attached at commencement of such transit”.

Final Conclusion

Claim was ultimately settled and the insured was made good of their losses.