LAHORE: A manufacturer of textile products has secured insurance claim along with liquidated damages against a Marine Insurance Policy against the goods found wet, damaged and not useable, said sources. The manufacturer had exported bales having bed sheets to his buyer in USA.
According to sources, the insurance company was of the view that the survey report suggests that the loss had already taken place six days before the issuance of the Marine Policy.
Also, the company took a stance that the vessel mentioned in the Marine Policy was changed without its consent. Even the name of transit port was also not mentioned in the insurance policy. Therefore the claim is not covered under the policy.
The textile manufacturer proved the fact that a number of Marine Policies were issued subsequent to the date of dispatch of goods from the port.
Therefore, the stance of the insurance policy carries no weight that the loss had already taken place six days before the issuance of the Marine Policy. It is a routine practice between the parties that goods are insured after they are left for the destination, sources added.
According to sources, the insurance company had itself mentioned about the depart of vessel ahead of the issuance of the Marine Policy. Therefore, it cannot deny the claim of insurance merely on the presumption that goods were damaged due to rain before the date of issuance of the policy.
Also, they said, that there was no explanation in the survey report that how many days it took the goods to get affected and damaged and whether the damage took place six days before the issuance of the Marine Policy.
So far as the change of carrier/vessel is concerned, sources said it was not their claim that the goods were damaged due to change of vessel or there was any defect in the vessel.
They said there is no provision in the Marine Policy that if the vessel is changed, the insurance policy would be repudiated. They added that the vessel was neither changed on their request nor they had any role in the change of vessel.
The insurance company was also unable to prove that the manufacturer had any knowledge about the change of vessel.
Copyright Business Recorder, 2023
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