TASMAC moves Court against Reliance

CHENNAI: The Tamil Nadu State Marketing Corporation (TASMAC) has moved the Madras High Court for recovery of arrears of insurance claim of Rs 2.57 crore on its IMFL/beer products from Reliance General Insurance Company Limited.In the civil suit, TASMAC counsel S Muthuraj submitted that while transporting various brands of liquor bottles in carton boxes, it had experienced certain losses due to breakages/damages of the bottles in trucks/lorries to various depots operated by it. To make good the losses, it had insured the products during transit from the factories. It had invited tenders and accepted the one from Reliance, which quoted the lowest bid. Reliance accepted the terms and conditions and TASMAC paid a total premium of Rs 7.13 crore from October 2008 to September 2009. As per the tender, claims below Rs 5,000 in value shall be settled within seven days on receipt of GRA (Goods Receipt Acknowledgement). Accordingly, the TASMAC preferred claims from October 2008 to September 2009. Reliance settled 100 per cent of the claim for the first four months and settled only 70 per cent for the remaining period. The company said there was insufficient/improper packing of the bottles and, hence, it was not liable to make 100 per cent payment.By accepting the premium at the pre-determined rate and settling the claims fully for the first four months, restricting the claim to 70 per cent amounted to breach of the tender norms, Muthuraj said, and sought payment of the remaining 30 per cent running to Rs 2.57 crore and Rs 93 lakh towards interest.