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The rupee has been falling for five straight weeks, taking its losses since the start of May to 5.71%, to make it among the worst performing currencies in Asia during this period
The rupee breached its all-time low of 57.32 against dollar in early trade today. It traded at 57.52 against Friday's close of 57.06/07 as of 09.28 am. The Indian currency had earlier hit a low of 57.54 against the greenback.
The rupee has been falling sharply since the start of May on concerns that the US Federal Reserve may withdraw its monetary stimulus and the Reserve Bank of India (RBI) may not reduce key rates as much as previously anticipated.
The rupee has been falling for five straight weeks, taking its losses since the start of May to 5.71%, to make it among the worst performing currencies in Asia during this period.
The state commission ordered New India Assurance to pay Rs80 lakh within 30 days with interest at the rate of 9% and also asked to pay additional amount of Rs50,000 towards the litigation cost and Rs1,00,000 as compensation for the mental agony faced by the complainant
A tactical move by a government-owned general insurer to reject a valid claim of an amount as high as Rs80 lakh by making convenient interpretation of the terms & conditions of the insurance policy was blocked by intervention of nationally renowned consumer organization Consumer Education & Research Society (CERS), which filed a case on behalf of a Ahmedabad-based firm in Consumer Disputes Redressal Commission, Gujarat and got an order in favour of the complainant for the settlement of the claim.
The State Commission ordered New India Assurance to pay Rs80 lakh within 30 days with interest at the rate of 9% and also asked to pay additional amount of Rs50,000 towards the litigation cost and Rs1,00,000 as compensation for the mental agony faced by the complainant.
As per the case details, Doshion, providing solutions for water management, received a contract for installation of a desalination plant on turnkey basis from Kerala Minerals Metal in 2005. As prescribed in the bid document, the company got a standard fire & special perils policy covering risk of Rs29.25 crore including cover of Rs5 crore for construction materials and other stocks before commencing the work in 2006 from New India Assurance Company by paying a premium of Rs8.08 lakh.
Thereafter, during the progress of the work, the construction site was flooded by the sea water due to breach in a nearby earthen embankment and whole machineries and material mobilized for the work were destroyed. The development was immediately reported to the insurance company. As per the evaluation, the damage was to the tune of about Rs80 lakh and Doshion put up a claim of Rs86.93 lakh before the insurer. However, the claim was rejected saying that the site, where the damage was done, was different one from the place cited in the insurance policy.
As the move was illegal, Doshion approached CERS to intervene. After verifying all the details, CERS filed a complaint in the Consumer Disputes Redressal Commission, Gujarat State, Ahmedabad. On behalf on CERS, Apurva Dave appeared in the Commission. After hearing both parties through their counsels, the Commission rejected the argument made by New India Assurance company and passed an order in favour of the complainant asking the insurer to suitably compensate.