SHREE AMBICA MEDICAL STORES & ORS. versus THE SURAT PEOPLE’S CO-OPERATIVE BANK LIMITED & ORS.

SHREE AMBICA MEDICAL STORES & ORS. versus THE SURAT PEOPLE’S CO-OPERATIVE BANK LIMITED & ORS.

The 2005-06 insurance for the Rs.60 lakhs cover was a fresh policy issued for a different location which expressly excluded STFI perils; the insurer refunded the STFI premium (Rs.992) and the refund was credited to the appellants' account and a copy of the policy was provided to them, therefore at the time of loss the insured was covered by a policy that excluded STFI perils and the insurer was not liable; the court will apply the terms of the contract and will not rewrite the agreement.

Parties
Appellants: SHREE AMBICA MEDICAL STORES & ORS.; First Respondent: THE SURAT PEOPLE’S CO-OPERATIVE BANK LIMITED; Third Respondent (insurer): New India Assurance Company Limited
Jurisdiction
India
Judgment Date
28 January 2020
Procedural Posture
Civil Appeal / Appeal From National Consumer Disputes Redressal Commission; Final Judgment
Outcome
Appeal dismissed
Legal Topics
Interpretation of Insurance Contract, Exclusion of STFI (storm, Tornado, Flood & Inundation) Perils, Policy Renewal Vs. Fresh Policy, Section 64 VB Insurance Act, 1938, Refund of Premium
Insurance Law Consumer Protection Contract Law Interpretation of Insurance Contract Exclusion of STFI (storm, Tornado, Flood & Inundation) Perils Policy Renewal Vs. Fresh Policy Section 64 VB Insurance Act, 1938 Refund of Premium

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Parties

SHREE AMBICA MEDICAL STORES & ORS.

Appellants

THE SURAT PEOPLE’S CO-OPERATIVE BANK LIMITED

First Respondent

New India Assurance Company Limited

Third Respondent (insurer)

Procedural Posture

Civil Appeal / Appeal From National Consumer Disputes Redressal Commission; Final Judgment

Legal Issues

  1. 1 Whether the insurer was liable for loss due to floods under the Rs.60 lakhs policy which purportedly excluded STFI perils
  2. 2 Whether the 2005-06 policy was a renewal of the existing policy or a fresh contract permitting exclusion of STFI perils
  3. 3 Whether refund of premium and provision of policy copy put the insured on notice of the exclusion

Ratio Decidendi

The 2005-06 insurance for the Rs.60 lakhs cover was a fresh policy issued for a different location which expressly excluded STFI perils; the insurer refunded the STFI premium (Rs.992) and the refund was credited to the appellants' account and a copy of the policy was provided to them, therefore at the time of loss the insured was covered by a policy that excluded STFI perils and the insurer was not liable; the court will apply the terms of the contract and will not rewrite the agreement.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with no order as to costs