Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Insurance |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Insurance – Deterioration of Stock Policy (DOS policy) – Specific exceptions in the policy – Stock of potatoes stored by the appellant had sprouted while in the cold storage – Claim submitted to the insurer – The exceptions to the policy made it clear that the insurer would not be liable for any damage if the temperature in the refrigeration chamber did not exceed 4.4 degree celsius (400F) – It was stated by the appellant that the proper temperature was maintained and it was recorded in the logbook – After some time, when the statement of the representative of the appellant was recorded by the surveyor, it was asserted that the main cause for rotting of the potatoes was a rise in the temperature – NCDRC characterized the assertion as an “afterthought” and rejected the consumer complaint – On appeal, held: In the instant case, there is no ambiguity in the terms of the exception – The surveyor’s report indicates that the temperature never exceeded 4.4 degree celsius, which was also accepted by the appellants – The temperature of the cold storage is fundamental to the health of the potatoes relating to which the policy was undertaken – The insurer identified a temperature of 4.4 degree celsius as the optimum temperature, at which rotting of the potatoes should not occur and thus has exempted itself of any liability resulting from the deterioration of potatoes occurring at a temperature that is below or equivalent to 4.4 degree celsius – There is no reason to read down clause (vi) of exceptions to the DOS Policy because it is not in conflict with the main purpose of the policy – In terms of the insurance policy, the insurer is not liable for damage caused to the potatoes as the temperature of the storage did not rise above 4.4 degree celsius – No interference required in the Judgment of the NCDRC. Insurance – Role of exceptions in insurance policy – Discussed. |
Judge | Hon'ble Dr. Justice D.Y. Chandrachud |
Neutral Citation | 2022 INSC 86 |
Petitioner | M/s Shivram Chandra Jagarnath Cold Storage & Anr. |
Respondent | New India Assurance Company Limited & Ors. |
SCR | [2022] 2 S.C.R. 363 |
Judgement Date | 2022-01-24 |
Case Number | 2371 |
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