Insurance Company Cannot Take A Defense Which Did Not Form The Basis Of Repudiation Of The Claim
Case: JSK Industries Pvt Ltd vs Oriental Insurance Company Limited
Coram: Justices Dinesh Maheshwari and Aniruddha Bose
Case No.: CA 7630 OF 2022
Court Observation: “In that case, it was a claim relating to standard fire and special perils policy. Repudiation was solely on the ground that a spontaneous combustion did not result into fire and loss had not been caused by the fire as stipulated by policy conditions. The insured had approached the National Commission. One of the defenses taken by the insurance company in the Commission was that the intimation of claim was with delay for over a month. This delay, according to the insurance company vitiated condition 6(i) of the general conditions of the policy, as applicable in that case. The insurance company was successful before the National Commission. The insured preferred an appeal which was heard and decided by a Coordinate Bench. Before the Bench, the main point on which the case turned was that the insurance company was taking a defense which did not form the basis of repudiation of the claim. It is in that context this Court held this was impermissible.”
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