Coverage of 'Flood & Inundation' insurance includes damage caused by heavy rains and not just overflowing of river

Last updated: 13 June 2022

Save Share

Quick Summary

The Supreme Court of India has ruled that 'Flood & Inundation' insurance coverage extends to damage caused by heavy rainfall, not solely by the overflowing of rivers or other water bodies. This decision came after a cement manufacturer's coal stock was damaged due to heavy rains, and the insurance company denied the claim, arguing it wasn't a 'flood' in the traditional sense. The court clarified that both terms, 'flood' and 'inundation', encompass damage from significant rainfall leading to water accumulation or washing away of property.

Court :
Supreme Court of India

Brief :
In the instant case, the Appellant has not disputed that there were heavy rains on 29.08.2003 and 30.08.2003 in the Nimbahera region. In fact, the surveyor appointed by the Appellant had also observed in its report that heavy rainfall had occurred in the area, causing flood-like conditions that resulted in some of the coal kept in the insured premises being washed off.

Citation :
[2020] INSC 91 -SUPREME COURT OF INDIA

Daily Limit Reached

You have reached your daily limit of 2 Free Judgements

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited Judgements Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

1 Year PLAN - Rs.~~1999~~

1799

(Excl. of GST ₹323)

2 Years PLAN - Rs.~~3499~~

3149

(Excl. of GST ₹566)

BEST VALUE

3 Years PLAN - Rs.~~4999~~

4499

(Excl. of GST ₹809)

View all CCI PRO benefits

Already a PRO member? Login here for an ad-free experience. 07941056694

222 Views Comment Share Corporate Law Report

Judgement posted by

FCS Deepak Pratap Singh

Associate Vice President - Secretarial & Compliance (SBI General Insurance Co. Ltd.)

Dear Friends, MyselfFCSDeepak P. Singh ( B.Sc.. LLB, FCS. FIII, CIAFP, CRMP, ID) , A Fellow Member of ICSI, Law Graduate ,Fellow Member of Insurance Institute of India, Certified Independent Director ,Certified Insurance Anti Fraud Professional , Certified Risk Governance Professional ( ICSI-III) and cleared Limited I ... Read more

View Judgements

Comments