UNITED INDIA INSURANCE CO. LTD. versus M/S. PUSHPALYA PRINTERS

UNITED INDIA INSURANCE CO. LTD. versus M/S. PUSHPALYA PRINTERS

The word 'impact' in Clause 5 of the insurance policy is not confined to forcible direct contact but, in the absence of an exclusion, reasonably includes damage caused to the building and machinery due to the vibration and effects of a bulldozer operating close by. Any ambiguity must be resolved in favour of the insured applying the rule of contra proferentem.

Parties
Appellant: United India Insurance Co. Ltd.; Respondent: M/s. Pushpalya Printers
Jurisdiction
India
Judgment Date
25 February 2004
Procedural Posture
Civil Appeal / Appeal Against Order of National Consumer Disputes Redressal Commission in R.p. No. 830 of 1996
Outcome
Appeal dismissed
Legal Topics
Interpretation of Insurance Contracts, Meaning of 'impact', Contra Proferentem Rule
Insurance Law Consumer Protection Interpretation of Insurance Contracts Meaning of 'impact' Contra Proferentem Rule

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Parties

United India Insurance Co. Ltd.

Appellant

M/s. Pushpalya Printers

Respondent

Procedural Posture

Civil Appeal / Appeal Against Order of National Consumer Disputes Redressal Commission in R.p. No. 830 of 1996

Legal Issues

  1. 1 Whether the word 'impact' in Clause 5 of the insurance policy covers damage caused to the building and machinery due to driving of a bulldozer on the road close to the building.

Ratio Decidendi

The word 'impact' in Clause 5 of the insurance policy is not confined to forcible direct contact but, in the absence of an exclusion, reasonably includes damage caused to the building and machinery due to the vibration and effects of a bulldozer operating close by. Any ambiguity must be resolved in favour of the insured applying the rule of contra proferentem.

Court Disposition

Appeal dismissed

Orders

  • No merit found in appeal. Impugned order is affirmed. No costs.