CASE STUDY ON MARINE

INSURANCE POLICY
——————————————————
• APPELANT- M|S BASPA ORGANICS
LIMITED
• VS
• RESPONDENT- UNITED INDIA
INSURANCE COMPANY LTD
 INTRODUCTION 

• Baspa Organic Limited is a company that

specializes in the production and export of
organic food products. In 2014, the
company purchased a marine insurance
policy from United India Insurance for their
cargo of organic lentils being shipped from
Mumbai to Montreal. During the shipment,
the cargo suffered damage due to rough
handling by the carriers, and the company
filed a claim with the insurer.
 ARGUMENTS

• However, United India Insurance

rejected the claim, citing an exclusion
clause in the policy that stated
damages due to improper packing or
handling would not be covered. Baspa
Organic Limited challenged this
decision in court, arguing that the
damage was not due to improper
packing but rather rough handling by
the carriers, which was beyond their
control.
 COURT DECISION

• The court ruled in favor of Baspa Organic

Limited, stating that the exclusion clause was
ambiguous and could not be used to deny
coverage in this case. The court also noted that
United India Insurance had failed to conduct a
proper investigation into the cause of the
damage before rejecting the claim. As a result,
the court ordered United India Insurance to
pay Baspa Organic Limited the full amount of
the claim, plus interest and costs.
 CONCLUSION

• This case highlights the importance of clear and

unambiguous insurance policies, as well as the need for
insurers to conduct thorough investigations before
denying claims. It also underscores the value of having
legal representation when dealing with insurance
disputes.