Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Insurance – Insurance policy – Exclusion Clause – Applicability of insurance cover |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Insurance – Insurance policy – Exclusion Clause – Applicability of insurance cover – Appellant had taken an insurance policy from respondent-insurance company in respect of its’ factory – Claim lodged by appellant on basis of said policy, stating that about 50-60 people with arms and ammunition entered its factory premises and caused substantial damage to the factory, machinery and other equipment – Respondent-insurance company repudiated appellant’s claim placing reliance on the Exclusion Clause in the policy regarding loss or damage caused by the acts of terrorism – If warranted – Held: Wherever an Exclusion Clause is contained in an insurance policy, it would be for the insurer to show that the case falls within the purview thereof – On facts, respondent-insurer did not discharge the burden of bringing the case within the four corners of the Exclusion Clause in the insurance policy – When the policy itself defined the acts of terrorism in the Exclusion Clause, the terms of the policy being a concluded contract governed the rights and liabilities of the parties – Definitions of ‘terrorism’ in various penal statutes could not be relied upon, since the Exclusion Clause contained an exhaustive definition of acts of terrorism – Moreover, on facts, the policy explicitly covered a liability arising out of the damage to the property of the insured due to riots or use of violent means – Hence, the decision to repudiate the insurance policy cannot be sustained – There was no warrant for applying the Exclusion Clause contained in the insurance policy. Words and Phrases – Words “similar purposes” – Meaning of |
Judge | Hon'ble Mr. Justice Abhay.S. Oka |
Neutral Citation | 2022 INSC 502 |
Petitioner | Narsingh Ispat Ltd |
Respondent | Oriental Insurance Company Ltd. & Anr. |
SCR | [2022] 3 S.C.R. 151 |
Judgement Date | 2022-05-02 |
Case Number | 10671 |
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