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

Last updated: 13 June 2022
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

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