The Supreme Court has set aside the order of the National Consumer Commission and directed National Insurance Company to pay exporter Sky Gems Rs 28.30 lakh for the loss in transit of parcels of emeralds sent to England.
It will also have to pay interest at the rate of 18 per cent, from the date on which the claim was made. The commission had ordered payment of the insurance money in pounds sterling. The Supreme Court reversed that order and ruled that the money could be paid in rupees.
The precious stones were sent from the foreign post office in Delhi and the postal authorities admitted that they were not delivered in London. They paid their liability. The exporter then sought the insurance money in pounds sterling from the insurance company.
There was a delay in the settlement of the claim. So it approached the National Commission. It held that since the insurance policies had clearly stated that the claim would be