SC issues notice to New India Assurance

The Supreme Court has issued notice to New India Assurance Company on a petition questioning the insurance company's claim as a consumer.

A bench headed by Chief Justice K G Balakrishnan sought reply from the insurance company on a petition filed by Premier Transport challenging the National Consumer Disputes Redressal Commission judgment that asked it to pay damages to the tune of Rs 96.26 lakh with interest at the rate of 10 per cent from the date of lodging of the claim.

The consumer court had held that the insurance company was entitled to recover the damages from the transporter who was to deliver the consignment safely, undamaged and without loss at the consignee's destination.

Premier Transport said that it had neither availed the insurance company's services nor the latter had provided any services to it.

Premier Transport had transported six drums containing copper cables belonging to Madhya Pradesh-based Universal Cables (UCL) at the latter's risk. However during transit an accident had damaged the goods.

While UCL had independently insured the goods with the insurance company, the latter had paid damages to the tune of more than Rs 96.26 lakh to the consignee, the petition stated.