Page 27 - The Insurance Times May 2025

Insurance Demystified

The importance of

context- the

implication of

Noscitur a sociis Rule Prof (Dr) Abhijit K. Chattoraj
Chartered Insurer - Professor of
Insurance &Risk Management and
Director - MDP & Consulting;
IMS Unison University.

Context becomes very important when decoding a word used in a policy. In other words, the
meaning of a word depends always on its context. When the meaning of the word used in a policy
is uncertain or nebulous, the court first considers the immediate context of a word. It considers
the broader context of the paragraph, section, or policy as a whole if needed.

C ontext becomes very important when decoding a company (Sun Alliance & London Insurance) under a

word used in a policy. In other words, the meaning
household policy seeking protection against damage or
of a word depends always on its context. When
destruction from storm, tempest or flood and escape of
the meaning of the word used in a policy is
heating installation. In 1973, water entered the downstairs
uncertain or nebulous, the court first considers the water from or frost damage to any water, drainage or
immediate context of a word. It considers the broader lavatory and rose to a depth of 3 inches. Young preferred a
context of the paragraph, section, or policy as a whole if claim from his insurers for a loss of pound 468 for the cost
needed. Noscitu, a sociis, interprets a word in the light of of work and pound 294 for the cost of redecoration caused
other words. Simply put, the rule' Noscitur a sociis' maintains to his house no-1 Grange Road, Elstree Herts by Flood - a
that a word is explained by the company it keeps. The Latin peril covered in the policy.
words "Noscitur" means "is known" and "Sociis" means "by
its associates," Noscitur a Sociis is a principle that explains The court rejected the claim, holding that the policy
that a particular word or phrase in a statute is based on its intended to cover three types of natural phenomena, which
context and association with other words or phrases in the were related not only by the fact they were natural but
same provision or statute. also by unusual manifestations of those phenomena in that
they were accompanied by violence. Mere seepage of
Interpretation of perils- Flood, inunda- water from a natural source cannot be considered a flood.
It has to be an abnormal occurrence, such as a significant
tion, storm, tempest in the light of the irruption of water. The three natural phenomena are
above observation related as they are natural but also connote unusual

In Young v. Sun Alliance & London Insurance (1977)- The manifestations.
plaintiff's house ( Montague Young) was built on a meadow
land. The plaintiff insured it with the defendant's insurance Storm means rain accompanied by a strong wind; tempest

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