Financial Daily from THE HINDU group of publications
Friday, May 26, 2006
Financial Daily from THE HINDU group of publications Friday, May 26, 2006 |
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Money & Banking
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General Insurance Marketing - Regulatory Bodies & Rulings Agri-Biz & Commodities - Rice Clean chit to 3 insurance cos in basmati MRTPC case Our Bureau
New Delhi , May 25 The Monopolies and Restrictive Trade Practices Commission (MRTPC) has given a clean chit to three insurance companies, New India Assurance Co, United India Insurance Co and National Insurance Co. A Punjab-based rice exporter had filed a petition against the insurance companies claiming that the companies had not properly assessed the loss caused by rains damaging the rice stock placed in the shed and had indulged in unfair trade practice in the settlement of the claims. The surveyor assessed the loss to amount to around Rs 1.6 crore and excluded the loss of 5070 bags of basmati rice.
CHARGE AGAINST SURVEYORS
According to the rice exporter, the surveyors had not taken into account "the loss of the damaged 5,070 bags of basmati rice, the rate difference of whole-grain basmati rice and paddy basmati and the interest charged by the consortium banks due to delay". The company had also alleged that the insurance companies charged different rates for the purpose of charging premium. While the insurance companies had accepted the price mentioned in the stock statements furnished to the banks, the surveyor applied a different rate in calculating the losses.
DELAY IN SETTLEMENT
The exporter also alleged that the delay in settling the claims had affected his business and that the "practices adopted by the respondents (insurance companies) tantamount to restrictive/unfair trade practices". The companies on their part said they had made a total payment of Rs 29.66 lakh in full and final settlement, which the exporter accepted. According to the companies, the surveyor had disallowed the claim for the value of 5070 rice bags on the grounds that they were not insured. `RISK NOT COVERED' The Commission in its findings stated that as far as the claim with respect to the interest charged by the consortium bank due to delay was concerned, the risk was not covered by the insurance policies. The Commission hence stated: "... we hold that the respondents have not committed any restrictive/unfair trade practice in the settlement of the claims of the applicant (exporter company)."
More Stories on : General Insurance | Regulatory Bodies & Rulings | Rice
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