New India Assurance gets Rs 1,430 crore relief from IRDAI

The Insurance Regulatory and Development Authority has relieved New India Assurance from a large insurance claim of Rs 1,430 crore from Nectar Life Sciences.

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

“Considering the facts and circumstances, it is confirmed that the loss did not occur due to fire in the ship, but due to delay in transit, which is an exclusion under the policy,” said IRDAI 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.”