SC: Parties cannot rely upon the definitions of terrorism in penal statutes since the Exclusion Clause contains an exhaustive definition

Last updated: 07 June 2022
Quick Summary
The Supreme Court has ruled that insurance companies cannot rely on definitions of 'terrorism' found in penal statutes when applying an exclusion clause in a policy. Instead, they must adhere strictly to the definition provided within the policy's exclusion clause itself, which is considered exhaustive. The court found that the insurance company had wrongly repudiated a claim by using an external definition of terrorism, and ordered the case to be reheard.

Court :
Supreme Court of India

Brief :
Supreme Court of India was dealing with the petition filed under Section 23 of the Consumer Protection Act, 1986. The appellant has challenged the judgment and order dated 18th October 2016 of the National Consumer Disputes Redressal Commission. By the said Judgment, the Commission dismissed the Consumer Complaint filed by the appellant.

Citation :
CIVIL APPEAL NO.10671 of 2016

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