Delhi Consumer Commission Orders Insurance Company and Shipping Firms to Compensate Exporter for Frozen Ginger Shipment

Delhi Consumer Commission Orders Insurance Company and Shipping Firms to Compensate Exporter for Frozen Ginger Shipment

A recent order by the Delhi bench of the State Consumer Disputes Redressal Commission (SCDRC), presided over by Justice Sangita Dhingra Sehgal (President) along with Members Pinki and J.P. Agrawal, ruled in favour of an exporter who faced financial losses due to a shipment of fresh ginger arriving frozen in Saudi Arabia. The case involved a temperature discrepancy during transport and a denied insurance claim.

An Indian exporter insured a shipment of fresh ginger destined for a buyer in Riyadh, Saudi Arabia. The insurance policy was provided by Oriental Insurance Company Limited. The terms stipulated transport in a refrigerated container with a temperature setting of 11 degrees Celsius.

However, a critical error resulted in the ginger being shipped at a much lower temperature of -11.1 degrees Celsius. This freezing temperature rendered the ginger unusable upon arrival, leading to the Saudi Arabian buyer's rejection of the shipment and the cancellation of the contract.

The exporter suffered financial losses due to the damaged shipment. They filed a claim with Oriental Insurance for compensation, but the claim was denied. Undeterred, the exporter filed a consumer complaint with the SCDRC in Delhi.

The SCDRC sided with the exporter. The Commission acknowledged the valid marine cargo insurance policy for the specific shipment. Furthermore, they found negligence on the part of the transit and logistics companies involved (identified as Opposite Parties 2-6) for failing to maintain the required temperature during transportation, causing the damage.

The SCDRC rejected the arguments presented by the insurance company. The Commission emphasised that the damage occurred during the insured voyage, making Oriental Insurance liable for compensation. As a result, the SCDRC ordered the insurance company to reimburse the exporter the full insured amount of ₹29,03,244 along with interest.

The SCDRC's ruling went beyond the insurance coverage. The negligent transit and logistics companies were further directed to pay the exporter an additional ₹2 lakh for mental agony and harassment, along with ₹50,000 to cover litigation costs.