Page 31 - The Insurance Times September 2025

Inurance Demystified

The Inference of

Waiver in Different

Insurance Policies

Dr Abhijit K. Chattoraj
Chartered Insurer

The stipulation clause 'No claim under this policy shall be payable unless the terms of this policy
condition have been complied with' is sine qua non (an essential condition; a vital thing), and is
often missed while processing a fire claim.

I n my last article, 'Unravelling the Implications of pertaining to the above claim, and subsequent investigation

into the matter, we find that the above claim lodged by you
Estopel and Waiver in Claims Settlement,' published in
does not fall under the purview of "TRANSIT LOSS". As such,
the August 2025 issue of 'The Insurance Times' under
the caption 'Insurance Demystified,'I mentioned that
view of this, we are treating your above claim as "NO
I would discuss the case of Galada Power and the claim is not tenable under the terms of the policy. In
Telecommunication Ltd. vs. United India Insurance Co.Ltd. CLAIM'.
(C.A.No.8884-8900 of 2010) in the context of Waiver and
Estoppel. The claimant's case before the Consumer Disputes Redressal
Forum, Ranga Reddy District, involved a dispute between a
Background of the above case period 1.3.1998 and 13.4.1998, during which twenty-one
Galada Power and Telecommunication took a marine trucks of AAAC wire, packed in wooden drums, were
(transit) policy from United Insurance Co. Ltd, vide Policy delivered to the PGCIL stores in Assam. PGCIL noticed
No.050202/21/26/16/2101/97. There was a shortage/loss of transit losses in all trucks on March 25, 1998. The District
'All Aluminium Alloy Conductor' (for short, 'AAAC') wire, Forum refused to entertain the claims for three reasons: the
which the Galada Power supplied to the Power Grid absence of non-joinder of necessary parties, the lack of proof
Corporation of India Limited (PGCIL). Galdada Power filed a of suspected theft, and the factual dispute not being
claim of Rs 35 lakh against the insurance company on April decided in the summary proceedings.
3, 1998. Based on the intimation, the Insurer appointed a
surveyor who submitted his report on 1st September 1998, Disgruntled by the above decision, the claimant preferred
assessing the loss at approximately Rs. 2 lakhs in each case, an appeal before the State Commission, i.e., the Andhra
totalling Rs. 43 lakhs. Pradesh Consumer Disputes Redressal Commission. The
State Commission, after reviewing the documents presented
United India Co.Ltd repudiated the claim on 20th to it, concluded that the investigator's report could not be
September,1999, stating that 'On perusal of the records trusted, as it was completed six months after the date of

The Insurance Times September 2025 29