UNITED INDIA INSURANCE CO. LTD. versus M/S HYUNDAI ENGINEERING & CONSTRUCTION CO. LTD. & ORS.

UNITED INDIA INSURANCE CO. LTD. versus M/S HYUNDAI ENGINEERING & CONSTRUCTION CO. LTD. & ORS.

The Supreme Court held that the insurer had discharged the burden of proving applicability of the policy's exclusion clauses by adducing the surveyor's report and the Government Expert Committee report, the respondents' expert reports were not adduced as evidence and were theoretical, and continuation of the contract by NHAI did not negate applicability of the exclusion; accordingly the NCDRC erred in directing payment and its order was set aside.

Parties
Appellant: United India Insurance Co. Ltd.; Respondent: M/s Hyundai Engineering Infrastructure Co. Ltd.; Respondent: M/s Gammon India
Jurisdiction
India
Judgment Date
16 May 2024
Procedural Posture
Civil Appeal / Supreme Court Judgment on Appeal From the National Consumer Disputes Redressal Commission
Outcome
Appeal allowed; impugned order of the National Consumer Disputes Redressal Commission dated 16.01.2023 set aside
Legal Topics
Exclusion Clause, Repudiation of Insurance Claim, Deficiency in Service, Interpretation of Insurance Policy
Insurance Consumer Protection Exclusion Clause Repudiation of Insurance Claim Deficiency in Service Interpretation of Insurance Policy

Case Brief

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Parties

United India Insurance Co. Ltd.

Appellant

M/s Hyundai Engineering Infrastructure Co. Ltd.

Respondent

M/s Gammon India

Respondent

Procedural Posture

Civil Appeal / Supreme Court Judgment on Appeal From the National Consumer Disputes Redressal Commission

Legal Issues

  1. 1 Whether the insurer validly repudiated the contractor's claim relying on an exclusion clause in the Contractor's All Risk policy
  2. 2 Whether the National Consumer Disputes Redressal Commission was correct in directing the insurer to pay the claimed insurance amount
  3. 3 Evidentiary weight of the surveyor's report and the Expert Committee report versus independent expert reports not placed in evidence

Ratio Decidendi

The Supreme Court held that the insurer had discharged the burden of proving applicability of the policy's exclusion clauses by adducing the surveyor's report and the Government Expert Committee report, the respondents' expert reports were not adduced as evidence and were theoretical, and continuation of the contract by NHAI did not negate applicability of the exclusion; accordingly the NCDRC erred in directing payment and its order was set aside.

Court Disposition

Appeal allowed; impugned order of the National Consumer Disputes Redressal Commission dated 16.01.2023 set aside

Orders

  • Impugned order dated 16.01.2023 of the NCDRC in Consumer Complaint No.160 of 2019 set aside
  • Pending applications, if any, disposed of