If declaration is late, claim can be rejected

The insurer pointed out that the policy conditions in respect of timely declaration of shipments had been violated, and rejected all the claims

Jehangir B Gai

Happy Steels, a private limited company, had obtained an insurance policy from Export Credit Guarantee Corporation of India (ECGC) to cover risk while exporting goods. Happy Steels had exported goods to Overseas Trading Company of USA, which defaulted in making payment. So Happy Steels lodged claims under the policy. The insurer, however, found that there had been delays in declaration of the shipments for which the claims were lodged. Declarations for five shipments sent on November 14, 2007, March 1, 2008, March 11, 2008, April 5, 2008, and May 23, 2008, were belatedly given on ...