THE UNITED INDIA INSURANCE CO. LTD. versus M/S M.K.J. CORPORATION

THE UNITED INDIA INSURANCE CO. LTD. versus M/S M.K.J. CORPORATION

Since the exclusionary clause recommended by the Tariff Advisory Committee was not incorporated in the policy at the time of contract, the insurer is liable for spoilage caused due to strike. Duty of good faith prohibits unilateral changes post-contract, and liability undertaken by insurer includes strike damages.

Source-derived case information.

Parties
Appellant: United India Insurance Co. Ltd.; Respondent: M.K.J. Corporation
Jurisdiction
India
Judgment Date
21 August 1996
Procedural Posture
Civil Appeal / Decision on Appeal From National Consumer Disputes Redressal Commission, New Delhi
Outcome
Appeals disposed of; insurer held liable to pay insured amount for spoilage due to strike with interest at 12% per annum from January 1, 1991 till date of payment; claim for consequential loss rejected.
Legal Topics
Binding Effect of Tariff Advisory Committee Recommendations, Exclusionary Clauses in Insurance Policy, Duty of Good Faith in Insurance Contracts, Interest on Insurance Claims
Insurance Law Consumer Law Binding Effect of Tariff Advisory Committee Recommendations Exclusionary Clauses in Insurance Policy Duty of Good Faith in Insurance Contracts Interest on Insurance Claims

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Parties

United India Insurance Co. Ltd.

Appellant

M.K.J. Corporation

Respondent

Procedural Posture

Civil Appeal / Decision on Appeal From National Consumer Disputes Redressal Commission, New Delhi

Legal Issues

  1. 1 Whether exclusionary clause recommended by the Tariff Advisory Committee for spoilage due to strike applies when not incorporated in the policy
  2. 2 Liability of insurer for damage to goods caused by strike when policy does not include exclusion clause
  3. 3 Entitlement to interest on delayed insurance payment

Ratio Decidendi

Since the exclusionary clause recommended by the Tariff Advisory Committee was not incorporated in the policy at the time of contract, the insurer is liable for spoilage caused due to strike. Duty of good faith prohibits unilateral changes post-contract, and liability undertaken by insurer includes strike damages.

Court Disposition

Appeals disposed of; insurer held liable to pay insured amount for spoilage due to strike with interest at 12% per annum from January 1, 1991 till date of payment; claim for consequential loss rejected.

Orders

  • Appellant-insurer to pay Rs. 5,04,453.23 for damages caused due to strike with interest at 12% per annum from January 1, 1991 till date of payment.
  • Claims for consequential loss by respondent deemed rejected.