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TMI Blog2023 (8) TMI 463X X X X Extracts X X X X X X X X Extracts X X X X ..... te of their stocking in the ponds was 7-10.09.1994. The insurance policy indicated that the expected yield for 22,67,000 prawn larvae, in terms of weight, was 80.400 kgs. and the average body weight of the prawns, at full size, ranged from 11 grams to 33.5 grams each. The expected dates of harvesting were from 07.02.1995 to 11.02.1995. The policy provided that the insurance period would be split up into fortnights and each calendar month was to be treated as two fortnights, irrespective of the number of days in the month. The policy further stipulated that a loss due to any peril covered thereunder would be treated as a total loss if the loss percentage at any particular stage was equal to or exceeded 80% of the total population of the prawns in the pond and no claim would be admissible under the policy if the loss percentage in a pond due to any of the covered perils was below 80%. A separate table was appended to the policy, indicating the maximum liability, in terms of percentages of the sum insured, during the ten fortnights covered by the insurance policy. 3. While so, there was a major outbreak of a bacterial disease called 'White Spot Disease' along the east coast of Andhra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on order passed by the NCDRC, both the claimants and the insurance company approached this Court, by way of a batch of appeals, viz., Civil Appeal Nos. 5294, 7091, 8051 and 4182 of 2004. By order dated 10.11.2009, this Court disposed of the appeals, opining that the NCDRC had not calculated the compensation properly, including the interest to be paid to the claimants. The matter was accordingly remanded to the NCDRC for an expeditious decision in that regard. 6. It is on the strength of this remand order that the NCDRC again undertook the exercise of quantification of the amount to be paid to the claimants and the interest to be awarded to them, leading to the order impugned presently by the appellant. Insofar as the appellant is concerned, the NCDRC took note of the survey report dated 01.09.1995 procured by the insurance company from M/s. Frank & Fair Investigators, Rajahmundry, wherein it was confirmed that it was a case of severe loss due to disease. The NCDRC also took note of the Death Certificate dated 01.05.1995 issued by the Regional Deputy Director of Fisheries, Andhra Pradesh, Visakhapatnam, and the Inspector of the Fisheries Branch, Visakhapatnam, which certified that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly Valuation Method: As the crop period was up to ten fortnights, the maximum claim admissible in the first fortnight is 25% of the sum assured and scales up through the fortnights proportionately. 9. The admissible loss is the lowest of the values computed on the strength of the above three calculation methods. The following values of loss were worked out by the appellant: Input Cost Method - Rs..75,98,361/-; Unit Cost Method - Rs..75,87,750/-; and Fortnightly Valuation Method - Rs..79,20,000/-. The respondent insurance company, however, disputes the same. Thus, the issue primarily boils down to quantifying the insurance amount payable to the appellant, in terms of the aforestated three methodologies. 10. As noted hereinbefore, the NCDRC deemed it fit to place reliance on a part of the report dated 22.09.1995 of the three surveyors, despite rejecting several observations made therein as baseless value judgments and surmises. In such a situation, the average body weight of each prawn assessed by those valuers was equally suspect. It may also be noted that the earlier report dated 01.09.1995 of M/s. Frank & Fair Investigators had estimated the average body weight of the dead prawn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... open to it to dismiss the Death Certificate dated 01.05.1995 issued by the officials of the Directorate of Fisheries, Visakhapatnam. Pertinent to note, under Clause 10 of the insurance policy, the claims procedure required the insured/claimant to furnish a fully completed claim form along with a death certificate with details, certified by officials of the Directorate of Fisheries/MPEDA. 12. Be it noted, in General Assurance Society Limited Vs. Chandumull Jain and another [AIR 1966 SC 1644], a Constitution Bench had observed, in the context of the insured, that uberrima fides, i.e., good faith, is the requirement in a contract of insurance. More recently, in Jacob Punnen and another Vs. United India Insurance Company Limited [(2022) 3 SCC 655], this Court affirmed and reiterated the edict laid down earlier in Modern Insulators Limited Vs. Oriental Insurance Company Limited [(2000) 2 SCC 734], that it is the fundamental principle of insurance law that utmost good faith must be observed by the contracting parties; that good faith forbids either party from non-disclosure of the facts which the party knows; and that the insured has a duty to disclose and similarly it is the duty of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und to be accurate, in terms of the figures mentioned in the Death Certificate dated 01.05.1995. As per the Fortnightly Valuation Method, the loss would work out to Rs..79,20,000/-. Admittedly, the appellant would be entitled to the lowest of the aforestated three valuations, viz., Rs..75,87,750/-. As the respondent company would have already paid the appellant the amount quantified by the NCDRC in the impugned order, viz., Rs..30,69,486.80, the appellant would be entitled to receive the balance amount of .45,18,263.20. The delay on the part of the insurance Rs. company in settling the appellant's claim fairly and in a timely manner warrants that it pays interest on the amount due and payable to the appellant in terms of this order. 15. Though the appellant claims that bank deposit interest rates ranged between 12% to 13% during the financial year 1995-1996, we find from the RBI statement, relied upon in this regard, that the interest rate for the financial year 1994-95 was 11% and for the year 1996-97, it was between 11% to 13%. That being so, the interest rate fixed by the NCDRC, viz, 10% is held to be just and equitable. 16. The sum of Rs..45,18,263.20 shall be remitted by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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