Insurance Discharge Voucher Does not Foreclose Arbitral Remedy
Judgment dated 18.3.2026 of the High Court of Bombay (OS) in Commercial Arbitration Petition (L) No.30675 of 2023 of Oriental Insurance Company Ltd Vs. Add on Retail Pvt Ltd
Insurance Discharge Voucher Does not Foreclose Arbitral Remedy
Bombay HC – IRDAI Circular and Supreme Court Precedent that signing of the discharge voucher and acceptance of the insurance claim amount does not amount to “accord and satisfaction” and does not bar the arbitration for higher insurance compensation claims.
The fire incident had taken place on 23.2.2017. Although final assessment report was given on 11.11.2017, the amount was not released but a second surveyor was appointed. The revised estimate at lower side was given on 16.10.2018.
Section 34 petition against the Arbitral Award for Rs.3,04,87,713/- for payment of insurance claim in respect of loss of stock of fabrics and accessories.
One of the grounds of challenge was that the insured had received full amount as per revised assessment surveyor report and therefore, the principle of accord and satisfaction of claim is applicable.
The circulars dated 24th September 2015 and 7th June 2016 issued by the IRDA support the claimant’s contentions that the voucher signed by the claimant under protest would not foreclose the right to seek higher compensation before the arbitral tribunal. The Apex Court in the case of National Insurance Company Limited has explained the applicability of the principle of accord and satisfaction.
