Insurance company cannot deny a genuine claim on the basis of dubious argument or fact

Last updated: 04 June 2022
Quick Summary
The Supreme Court has ruled that an insurance company, particularly a government-backed entity like ECGC, cannot deny a genuine claim based on an ambiguous interpretation of policy terms. In this case, the court found that ECGC had wrongly rejected an exporter's claim by relying on external guidelines to define the shipment date, rather than interpreting the ambiguous policy wording in favour of the insured. The court emphasised that if an insurance contract term is unclear, it should be construed against the insurer.

Court :
Supreme Court of India

Brief :
Denying the appellant's claim on account of upholding an unfavourable interpretation of an ambiguous term would entail the respondent not performing its duties as a government company.

Citation :
CIVIL APPEAL NO. 4139/2020

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 Broadcasts
  • Daily E-Newsletter
  • Unlimited Judgements Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
View all CCI PRO benfits

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

 
Comments


Recent Judgments :

  1. Forest Development Tax Demand, Collection and Refund Subject to Final Outcome of Pending Cases
  2. SC : Extended Limitation Cannot Be Invoked Where Department Was Aware of Valuation Facts
  3. SC : Selling Shares While in Possession of UPSI Constitutes Insider Trading Even if No Profit Is Made
  4. SC : Laser Imagers Compatible with Machines Under Different Tariff Headings Classifiable Under CTH 9033
  5. Education Consultancy Services to Foreign Universities Not Intermediary Services; Refund of IGST on Export of Services Allowed
  6. Penalty Cannot Be Confirmed Beyond What is Specified in Statutory Form GST DRC-01
  7. Non-Supply of Field Visit Report Vitiates Rejection of Revocation Application
  8. Alternative Remedy before GSTAT to be Exhausted Despite Allegation that Adjudication Travelled Beyond SCN
  9. ITAT Jodhpur: AO Allows ₹2.61 Crore Deduction under Sections 54EC and 54F; Assessee's Appeal Dismissed as Infructuous
  10. CESTAT Revokes Suspension of Customs Broker Licence for Non-Compliance with Mandatory 15-Day Hearing Requirement

View More Judgments »


Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Pro Member Angadi & CoAngadi & CoPro Member Amogh GokhaleAmogh GokhalePro Member Mritoonjay GoraiMritoonjay GoraiPro Member SHYAM SUNDER GULATISHYAM SUNDER GULATIPro Member Prashant KotechaPrashant Kotecha
Subscribe to Pro
Join an elite circle of professionals

Browse by Category