Page 39 - The Insurance Times August 2025

stable, albeit with occasional fluctuations. Despite this a) A claim in writing for the loss or damage containing as
disclosure, the insurer issues a policy. particular an account as may be reasonably practicable
of all the several articles or items or property damaged
Let us delve into a recent case to gain a deeper or destroyed, and of the amount of the loss or damage
understanding of the concept. thereto respectively, having regard to their value at the
time of the loss or damage, not including profit of any
In the Civil Appeal Nos 1217-1218 OF 2017 M/s. Sonell Clocks kind. b) Particulars of all other insurances, if any. c) The
and Gifts Ltd. ....Appellant(s) :Versus: The New India Insured shall also at all times at his own expense
Assurance Co. Ltd. ....Respondent(s) produce, procure and give to the Company all such
further particulars, plans, specification books, vouchers,
M/s. Sonnel Clocks and Gifts Ltd. had taken a Fire Insurance invoices, duplicates or copies thereof,
Policy from New India Assurance Co. Ltd. for a period of one documents No claim under this policy shall
year, from July 19, 2004 to July 18, 2005, for its building, be payable unless the terms of this condition have
plant, and machinery at Plot70/ Textile Compound, Dan been complied with.
Udyog Sangh Ltd., Piparia, Silvassa, Dadra Nagar, Haveli, for
a sum assured of Rs.2,87,00,000/- (Two Crore Eighty Seven Point of Contention -
lakh only) on reinstatement value basis.
1) The insured contested that the repudiation of the claim
on the grounds of delayed intimation, as well as non-
On August 4, 2004, torrential rains and floods ravaged the intimation of the requisite particulars of the loss within
entire area, causing water to surge into the factory
the stipulated period, was incorrect, as the insurer is
premises, damaging both the machinery and the raw
estopped from raising a plea of violation of the condition
materials stored therein. The loss was not reported to the warranting a repudiation by appointing a surveyor. The
insurance company immediately. In fact, the loss was above action was an indication of the insurer's
informed after a gap of 3 months and 25 days, on November admissibility of liability.
30, 2004.
New India Assurance Co. Ltd., having received the Course of action by the appellant -

intimation through the bank, appointed M/S. Saran The appellant filed a complaint before the National
Engineers & Consultants to survey and assess the loss caused Consumer Disputes Redressal Commission, New Delhi, vide
by the flooding of the factory premises. The surveyor Consumer Complaint No. 20 of 2006, and approached the
submitted its report, dated December 29, 2004, to New Commission with the plea that the respondent (insurance
India Assurance Co. Ltd., stating that the claim was not company) was guilty of both deficiency in service and unfair
payable due to the claimant's failure to comply with General trade practices. The appellant pleaded before the
Condition No. 6 of the Standard Fire and Special Perils policy. Commission to direct the respondent to pay a genuine claim
Based on the above findings, the respondent (New India of the appellant for the loss caused to it due to the floods
Assurance Co.Ltd) vide letter dated February 18, 2005 to the tune of Rs.2,66,05,000/-(Two Crore Sixty Six Lakh Five
intimated the repudiation of the claim to the appellant (M/ Thousand Only) with interest at the rate of 21% per annum
s. Sonnel Clocks and Gifts Ltd) on the ground that neither from the date of incident till realization of the same. The
the intimation of the loss had been given to it immediately appellant also prayed for compensation for mental agony
as stipulated in the policy issued to the appalent nor were and costs, as well as incidental expenses, to the tune of Rs.
the requisite particulars of the loss conveyed within 5,00,000/- (Five Lakh Only) and Rs. 1,00,000/- (One Lakh
stipulated period. Thus, there was a breach of the terms Only), respectively.
and conditions of Clause 6 of the general conditions of the
fire policy issued. As stated above, the complaint was challenged by the
insurer because there was a gross violation of the terms and
Let us peruse Condition 6 of the fire policy, which states, conditions stipulated in the policy.
'On the happening of any loss or damage, the Insured shall
forthwith give notice thereof to the Company and shall, The complaint filed by the appellant came to be dismissed
within 15 days after the loss or damage, or such further by the judgment of the National Commission vide order
time as the Company may in writing allow in that behalf, dated December 10, 2015, on the following terms:
deliver to the Company.

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