Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Insurance |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Insurance Regulatory and Development Authority (protection of Policyholders’ Interests) Regulations (4 of 2002) Insurance Act, 1938 (4 of 1938) |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Insurance – Reinstatement value clause – Whether the memorandum consisting of the Reinstatement Value Clause was a part of the policy – The Insured contended that the memorandum containing the Reinstatement Value Clause was not part of the policy: Held: The contention of the insured rejected – This is for the reason that before the NCDRC in the written statement filed by the NIACL it was specifically pleaded that copy of the fire policy was not attached with the Reinstatement Value Clause issued along with the policy, so the answering Respondent-insurer (NIACL) was filing the copy of the policy with complete terms and conditions and clauses along with the written statement – In the replication filed by the Insured, there was no denial of this averment. [Paras 31 and 32] Insurance – Computation of loss on depreciation basis – Was NIACL justified in computing loss on depreciation basis and fixing depreciation at 60%: Held: It emerges clearly that under the main terms of the policy the company was to pay the Insured the value of the property at the time of happening of the destruction (except where NIACL opts to reinstate) – There was a special memorandum attached to the policy – That memorandum was the Reinstatement Value Clause which substituted the basis upon which the amount was payable from the value on the date of destruction to the cost of replacing or reinstating the property i.e. property of the same kind or type but not superior or more extensive than the insured property when new – However, as it transpires the said memorandum ceased to have any force since the Insured was unable and unwilling to replace or reinstate the property – Special Provision 4 (b) of the memorandum applied and rendered the Reinstatement Value Clause ineffective – Also, the Insured under Clause 6(b) of the conditions had an obligation to give NIACL all such further particulars, plans, specifications, books, vouchers and invoices with respect to the claim – It is sufficiently brought out that in spite of the surveyors writing to the Insured repeatedly (on 14.12.1998, 03.05.2002, 24.06.2002 and 07.08.2002), there was no information forthcoming from the Insured about the invoices as proof of the value of the damaged equipment and the cost of the new equipment – Instead, the insured originally undertook that they will reinstate the damaged property; received the on account payment of Rs.4,92,80,905/- and informed NIACL that they have placed order for repair of 20 Hi Cold Rolling Mill – Thereafter by their letter of 16.06.1999, the Insured sought assessment of net adjusted loss at Rs.20.95 Crores – The surveyors of NIACL kept asking for the basic and relevant particulars, the Insured without furnishing the same kept asking for the settlement of the money – NIACL did not completely repudiate the claim – NIACL cannot be faulted for resorting to depreciation method – NIACL was also justified in writing the letter of 12.11.2002 (to increase the depreciation to 60%) because after reviving the demand to reinstate the plant, the Insured failed to furnish the documents required and even admittedly the plant as allegedly reinstated was of 6 Hi Cold Rolling Plant and not 20 Hi Cold Rolling Plant – An additional affidavit was also filed by NIACL before NCDRC to clarify the established practice for computing depreciation – The base figure of Rs. 20.09 crores was kept intact – Insured stood to gain by keeping figure at Rs. 20.09 crores – The depreciation at 60% upheld – Thus, the NIACL rightly ordered the settlement of the claim on 03.01.2003 stating the loss amount as Rs.7.88 Crores and ordering the balance amount of 2.88 crores be paid after adjusting the on account payment. [Paras 57, 58, 59, 66, 68, 69, 70, 71] Insurance – Is the Insured justified in claiming reinstatement value by placing reliance on the judgment in Oswal Plastic Industries: Held: No clause similar to the memorandum of reinstatement value clause appears to have existed in Oswal Plastic Industries – Oswal Plastic Industries has no application to the facts of the present case. [Para 75] |
Judge | Hon'ble Mr. Justice K.V. Viswanathan |
Neutral Citation | 2024 INSC 356 |
Petitioner | New India Assurance Company Ltd. Through Its Manager |
Respondent | M/s Tata Steel Ltd. |
SCR | [2024] 5 S.C.R. 285 |
Judgement Date | 2024-04-30 |
Case Number | 2759 |
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