Insurer held liable for delay in claim settlement

Ramesh Kanji Cham owned a motor vessel named "Miraj", which he used in the shipping business to transport materials.

- JEHANGIR B GAI

Cham insured the boat with National Insurance from February 8, 1997, to February 7, 1998.

On May 11, 1997, the vessel, which was docked at Abra Berth near Deira in Dubai Creek, keeled over on its left side. Upon learning about the mishap, Cham immediately notified the insurer and later submitted all the requisite documents. He registered a Marine Hull claim for DHS 7.56 lakh (about ₹73 lakh).

After five years of protracted correspondence, the insurer offered to pay only ₹21.44 lakh. Cham requested that this amount be released as an interim payment and sought reimbursement of the full claim of ₹73 lakh. Upon receiving the ₹21.44 lakh, he protested against the shortfall and requested a detailed computation and an explanation for the deduction. The insurer responded that it had re-examined the claim and had settled it in accordance with the surveyor's assessment.