NDLI: New India Assurance Co. Ltd. & Ors Vs. M/s. Mudit Roadways

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Consumer Protection Act Fire Insurance Claim
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case(s) Referred	Referred Case 0 Referred Case 1
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Dismissed
Headnote	Issue for consideration:Whether the National Commission was justified in allowing the fireinsurance claim of the insured against the insurance company.Consumer Protection Act, 1986 – Fire insurance claim –Repudiation of – Fire broke out at a insured warehouse –Insured having paid for coverage against fire and safeguardingthe custom bonded goods – Survey and investigations reports– Majority suggesting electric short circuit as the cause andtwo reports suggesting sparks from rooftop welding work –Repudiation of claim by the Insurance Company – Consumercomplaint by the insured – Allowed by the National Commissionholding that the insurance policy covered the complainant’swarehouse and the roofing work did not significantly increasethe risk and directed payment of specified amount with interestHeld: Insurance company’s obligation to the insured is of muchgreater import – Precise cause of a fire, whether attributed to ashort-circuit or any alternative factor, remains immaterial, providedthe claimant is not the instigator of the fire – Claim of the insuredagainst the insurer is upheld – Insurer cannot introduce additionalreasoning beyond those detailed in their letter, to justify therepudiation – Area where the fire occurred was covered by the saidinsurance policy – Looking at the various documents, it is reasonableto conclude that the insured premises was the one that was identifiedand insured by the insurance company – Repair work undertakenon the rooftop to prevent water leakage to the warehouse wouldnot fall in the category of an alteration which would increase therisk insured for the warehouse premises – Significant time gapthat exists between the welding work and the fire has no logicalexplanation – Basis of the repudiation accordingly appears to beunreasonable and is not acceptable – Surveyor’s report, althoughcomprehensive otherwise, is inconclusive on the aspect identifyingthe actual cause of fire – Given that the surveyor’s report onlyrelies on the Forensic Examiner findings, it would be unsafe to relyon the said report – Furthermore, the claimant neither assumesthe role of importer nor owner; instead, they function solely asa custodian entrusted with the goods on behalf of their clients –Customs duty component of the claim should, in the given event,be discharged directly to the Customs Department – Thus, it isa case of wrongful repudiation by the insurer – No legal infirmityin the impugned decision allowing the insured’s insurance claim.[Paras 33, 35, 37, 41, 47, 50, 55, 56, 58]Insurance – Insurance contracts – Doctrine of uberrimae fidei:Held: Trust serves as the cornerstone, forming the essence ofthe insurer-insured relationship – Fundamental principle is thatinsurance is governed by the doctrine of uberrimae fidei-there mustbe complete good faith on the part of the insured – Heart and soulof an insurance contract lies in the protection it accords to thosewho wish to be insured by it – This understanding encapsulatesthe foundational belief that insurance accords protection andindemnification, preserving the sanctity of trust within its clauses– Effectively, the insurer assumes a fiduciary duty to act in goodfaith and honour their commitment – This responsibility becomesparticularly pronounced when the insured, in their actions, havenot been negligent – In light of the vital role that trust plays ininsurance contracts, it is important to ensure that the insureradequately fulfils the duty that has been cast on it, by virtue ofsuch a covenant. [Para 57]Insurance Act, 1938 – s. 64 (UM) (4) – Value of a surveyor’sreport:Held: An approved surveyor’s assessment is necessary for aclaim – s. 64(UM)(4) mandates that claims above Rs. 20,000must be initially assessed by an approved surveyor – Insurerhas the discretion to settle the claim for a different amount, thanwhat is assessed by the surveyor – Surveyor’s report cannot beconsidered a sacred document and contrary evidence, includingan investigation report, is subject to rebuttal. [Para 42, 43, 45]
Judge	Hon'ble Mr. Justice Hrishikesh Roy
Neutral Citation	2023 INSC 1022
Petitioner	New India Assurance Co. Ltd. & Ors
Respondent	M/s. Mudit Roadways
SCR	[2023] 13 S.C.R. 1027
Judgement Date	2023-11-24
Case Number	339

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

New India Assurance Co. Ltd. & Ors Vs. M/s. Mudit Roadways

Please Log-in to view this content

M/s Sonell Clocks and Gifts Ltd. Vs. The New India Assurance Co. Ltd.

New India Assurance Company Ltd . Vs. M/s. Zuari Industries Ltd. & Ors.

M/s Baspa Organics Limited Vs. United India Insurance Company Ltd.

M/s. Krishna Food & Baking Industry P. Ltd. Vs. M/s. New India Assurance Co. Ltd. & Anr.

The New India Assurance Co. Ltd. Vs. M/s. Protection Manufacturers Pvt. Ltd.

New India Assurance Co. Ltd. Vs. Prabhu Lal

United India Insurance Co. Ltd. Vs. M/s Kiran Combers & Spinners

Canara Bank Vs. M/s United India Insurance Co. Ltd. & Ors.

Ashok Kumar Vs. New India Assurance Co. Ltd.

New India Assurance Co. Ltd. & Ors Vs. M/s. Mudit Roadways

New India Assurance Co. Ltd. & Ors Vs. M/s. Mudit Roadways

Please Log-in to view this content

Similar Documents

M/s Sonell Clocks and Gifts Ltd. Vs. The New India Assurance Co. Ltd.

New India Assurance Company Ltd . Vs. M/s. Zuari Industries Ltd. & Ors.

M/s Baspa Organics Limited Vs. United India Insurance Company Ltd.

M/s. Krishna Food & Baking Industry P. Ltd. Vs. M/s. New India Assurance Co. Ltd. & Anr.

The New India Assurance Co. Ltd. Vs. M/s. Protection Manufacturers Pvt. Ltd.

New India Assurance Co. Ltd. Vs. Prabhu Lal

United India Insurance Co. Ltd. Vs. M/s Kiran Combers & Spinners

Canara Bank Vs. M/s United India Insurance Co. Ltd. & Ors.

Ashok Kumar Vs. New India Assurance Co. Ltd.

New India Assurance Co. Ltd. & Ors Vs. M/s. Mudit Roadways