Saurashtra Chemicals Ltd.(Presently ... vs National Insurance Co. Ltd. on 13 December, 2019
“16.2. To ensure that all rights against carriers, bailees or
other third parties are properly preserved and exercised and
the Underwriters will, in addition to any loss recoverable
hereunder, reimburse the assured for any charges properly and
reasonably incurred in pursuance of these duties.”
12.5. Therefore, it is the duty of the plaintiff to ensure all
rights against a carrier are preserved. However, at the time of repudiating the
claim, the defendants have not raised a ground that the plaintiff violated this
obligation under Clause 16(2) of the Contract by his failure to preserve all
rights against the carrier. Therefore, as held in Saurashtra Chemicals
Limited Vs. National Insurance Company Limited case, cited supra, the
defendants are not entitled to take a new ground, which were not mentioned
in the letter of repudiation and contend that the plaintiff violated its
obligation under Clause 16(2) of Contract of Insurance Act. Therefore, the
issue No.3 is answered in favour of the plaintiff and against the defendants.