Insurance – Exclusion Clause & Proposal Form- Interplay – Repudiation of claim
The complainant – appellant had taken loan from Allahabad Bank which has joint venture with the Respondent No.1 Universal Sompo General Insurance Company and also its agent & intermediary.
The Chief Manager of Allahabad Bank and the Executive of Universal Insurance approached the complainant for insurance and induced by their offer, the complainant took the insurance for its property, godown and basement. However, the cover note was not provided.
On 3.8.2012, due to heavy rainfall in Dehradun, it was found that the major portion of surgical goods stock of the complainant was damaged.
The Insurance Company repudiated the claim on the ground that the stock kept in the godown is not covered by the police terms and conditions.
The State Commission dismissed the consumer complaint.
The National Consumer Commission found from the proposal form submitted by the complainant specifically mentioned “stock of surgical and pharmaceutical items kept in the basement”. The complainant specifically ticked in the box of “warehouse” and “basement”. Thus, the policy was sought to cover risk of stock kept in the warehouse and basement. When the complainant had specifically applied for such a policy, the Insurer was not expected to issue policy to exclude such stock of basement from the policy.
HELD that when the exclusion clause is against the very object of insurance contract, the Insurer cannot take benefit of exclusion clause, plead estoppel and take benefit of its own wrong. In this case, the Insurer had knowingly entered into a contract notwithstanding exclusive clause defeating very purpose of policy.
Order dated 14.10.2024 of the National Consumer Disputes Redressal Commission in First Appeal No.176 of 2015 of M/s. Jindal & Co Vs. Universal Sompo General Insurance Co. Ltd and others
