Insurance Act, 1938

The deceased K.T. Subramanya had taken four life insurance policies naming his mother, Challamma, as nominee. After his death, his alleged wife Tilaga and their two children applied for a succession certificate under Section 372 of the Succession Act, 1925, claiming the deceased was married to Tilaga. Challamma contest…

The Jabalpur Municipal Corporation introduced a Family Benefit Fund Scheme whereby employees made voluntary contributions and, in return, received lump‑sum payments on retirement or on death of the employee to his family. The Life Insurance Corporation of India (LIC) contended that the scheme amounted to life insurance…

The insured, Tata Steel Ltd., suffered a fire that destroyed its 20‑Hi cold rolling mill and claimed Rs 35.08 crore under a fire policy issued by New India Assurance Co. Ltd. (NIACL). The policy contained a Reinstatement Value Clause, but the insured failed to provide required documents and could not replace the mill w…

The petitioners, a company dealing in the purchase and resale of life‑insurance policies, challenged LIC's circulars of 2003 and 2005 that refused to register assignments of policies to firms engaged in trading such policies. They argued that Section 38 of the Insurance Act, 1938 makes policies transferable and assigna…

The appellant, Mis Hani Lera Textiles Ltd., held fire insurance policies with Oriental Insurance Co. for its mill premises, including a blow‑room that was inspected and charged a higher premium in November 1994. A fire in December 1994 destroyed most of the mill but not the blow‑room. After the loss, the insurer deduct…

The first respondent, a third‑party rider, suffered severe injuries when a truck insured by National Insurance Co. Ltd. (the appellant) collided with his vehicle. A cheque for the vehicle's premium was tendered before the accident but was later dishonoured; nevertheless, the insurer issued a cover note and, after the a…

Sikka Papers Ltd. insured a diesel generating set for Rs.35,00,000 but the set broke down and the insurer appointed a surveyor who allowed reimbursement only for parts damaged in the accident, rejecting claims for wear‑and‑tear replacements. The company paid Rs.25,00,000 for repairs and claimed the full amount plus Rs.…

Khatema Fibres Ltd. (appellant) filed a claim for loss of waste paper after a fire, estimating the loss at Rs.13 crore. The insurer, New India Assurance Co., appointed a surveyor who used volumetric analysis and assessed the loss at about Rs.2.86 crore, which the appellant contested. The National Consumer Disputes Redr…

The Life Insurance Corporation (LIC) offered a Salary Savings Scheme under which Delhi Electric Supply Undertaking (DESU) deducted insurance premiums from its employees' salaries and remitted them to LIC. DESU failed to remit premiums for two months, after which an employee died and his widow claimed the policy benefit…

The Supreme Court examined an appeal by United India Insurance Company Ltd, which sought to avoid liability for a motor accident on the ground that the driver’s licence was allegedly fake. The accident involved a vehicle driven by Janu, who presented a licence that appeared genuine; the insurer attempted to prove a dif…

The appellants hypothecated goods to The Surat People’s Co‑operative Bank and were required to insure them. The bank, acting as a corporate agent, obtained fire and special perils policies from New India Assurance, but for the 2005‑06 period the Rs 60 lakh policy expressly excluded storm, flood and inundation (STFI) pe…

The cement manufacturer M/s J.K. Cement Works insured its coal stock under a Standard Fire and Special Perils policy that covered "Flood and Inundation". Heavy rains on 29-30 August 2003 caused water to accumulate and wash off some coal, and the insurer's surveyor affirmed the loss was payable, but the insurer later re…

The deceased had submitted a life insurance proposal for Rs.50,000 on 27‑December‑1960 and paid two cheques as the first premium, which were encashed by the Life Insurance Corporation of India (LIC). The deceased died on 12‑January‑1961 before the Divisional Manager formally accepted the proposal. The respondents claim…

Harjeet Rice Mills, insured with National Insurance Co., claimed loss of stock after a fire in its godown, asserting the fire was accidental and caused by a short circuit. The insurer contested, alleging the fire was arson, the loss exaggerated, and that the claim was fraudulent, relying on a private investigator’s rep…

The insured, M/s. Mudit Roadways, held fire and customs duty insurance policies with New India Assurance Co. Ltd. for a bonded warehouse in Raigad, Maharashtra. A fire broke out on 14 March 2018; the insurer repudiated the claim, alleging that the fire occurred in an uninsured area and resulted from the insured's negli…

Sri Venkateswara Syndicate, a cotton trading partnership, suffered an accidental fire in its godown and claimed Rs.1.90 crore under its fire insurance policies with Oriental Insurance Company Ltd. The insurer appointed a series of surveyors – a licensed surveyor, joint surveyors, a second surveyor, and finally a charte…

Marsh India Insurance Brokers Pvt Ltd appealed against a Securities Appellate Tribunal order that set aside the IRDA’s dismissal of a complaint by Atkins Special Risks Ltd alleging that Marsh paid a bribe to Jagdish Gupta, Chairman of Jagson International Ltd, to obtain a re‑insurance brokerage contract. The Tribunal h…

Prithvi Raj owned a Mini Bus insured by Oriental Insurance. After an accident, he claimed compensation for damage to his own vehicle, but the insurer denied the claim, alleging that the driver did not possess a valid driving licence. The State Consumer Disputes Redressal Commission found that no licence had ever been i…

Deokar Exports imported a dehydration machine financed by Maharashtra State Finance Corporation (MSFC) and insured it against fire for the period 12‑Sep‑1986 to 12‑Mar‑1988. After the policy expired, MSFC sent a cheque for renewal which the insurer received on 26‑Aug‑1988; the insurer later issued a policy dated 30‑Jun…

The petitioners, the husband and son of a 39‑year‑old housewife who died in a road accident, claimed compensation under Section 166 of the Motor Vehicles Act, 1988. The Motor Accident Claims Tribunal initially awarded Rs 6 lakhs based on the notional income provision of Clause 6 of the Second Schedule but reduced it to…

Road Transport Company owned a passenger bus that met with an accident due to the driver’s negligence, killing 35 passengers. Nine claims were filed; the Tribunal awarded compensation but limited the insurer’s contribution to Rs 5,000 per passenger and Rs 75,000 in total, as per Section 95(2)(b)(ii) of the Motor Vehicl…

The General Insurance Corporation of India, a wholly government‑owned insurer, set aside a sum for redemption of preference shares and debited it to its profit and loss account in accordance with Rule 2(2)(a) of the General Insurance Business (Nationalisation) Rules, 1973. The Income‑Tax Officer treated the amount as r…

The rice mill suffered a boiler collapse after a lorry allegedly collided with it, and the insurer, New India Assurance, repudiated the claim, citing overload as the cause. The insurer appointed a preliminary surveyor, a structural expert, an investigator, and a final IRDA‑licensed surveyor, all of whom concluded the c…

The Managing Director of a company was injured while travelling in a car owned by the company and insured with National Insurance Company Ltd. He claimed compensation under Sections 140, 147 and 166 of the Motor Vehicles Act, 1988, and the Motor Accident Claim Tribunal held the insurer liable. The insurer appealed, arg…

The insured took a life insurance policy on 21 February 1987 and died on 6 July 1987. He had undergone an operation for adenoma thyroid four years earlier but answered "No" to the proposal question about any operation, constituting a deliberate misstatement. The Life Insurance Corporation repudiated the policy on 10 Fe…

The appellant, P. Venkatarama Reddy, had assigned three life‑insurance policies to his grandchildren during his lifetime but retained possession, continued to pay premiums and loans on them. The revenue treated the policies as part of the deceased’s general estate for estate‑duty purposes, while the appellant argued th…

The insured, Yash Paul Malhotra, entered into a motor insurance contract on 21‑12‑1993, gave a cheque for the first premium and received a cover note. He died in a road accident on 31‑12‑1993, and the insurer discovered that the cheque had bounced on 10‑01‑1994, cancelling the policy on 20‑01‑1994. The legal heirs clai…

The General Insurance Council and several insurers filed a writ petition under Article 32 of the Constitution alleging that police and other agencies were not complying with Supreme Court directions concerning the disposal of vehicles seized in criminal investigations. They contended that non‑compliance of Sections 451…

The Container Corporation of India (CONCOR) floated a limited tender for survey services and shortlisted Master Marine Services Pvt. Ltd. (appellant) and Metcalfe & Hodgkinson Pvt. Ltd. (first respondent). The appellant’s bid was 25% lower, but the first respondent challenged the award on the ground that the appellant …

The owner of a two‑wheeler insured the vehicle with an act policy under the Motor Vehicles Act, 1988. The owner’s son, who was driving the motorcycle, died in an accident. The claimants sought compensation from the insurer, arguing that the son was a "person" covered under Section 147 of the Act. The insurer contended …

The case concerned a claim for compensation under the Workmen's Compensation Act, 1923 where the Commissioner awarded Rs 2,21,370 with interest at 12% per annum and held the insurer, National Insurance Co., liable for payment. The insurer contended that, in the absence of an express contractual term, it was not liable …

The husband of Mrs. Helen C. Rebello died in a collision between a Maharashtra State Road Transport Corporation bus and a Karnataka State Transport bus, the accident being caused by negligent driving. The legal heirs filed a claim for compensation under the Motor Vehicles Act, 1939 and were awarded Rs.3,90,000 by the t…

The insured, a manufacturer of polyethylene products, suffered a total loss of plant, machinery and stock due to a fire on 6 November 1999. The insurer appointed joint surveyors who submitted a loss assessment, but thereafter delayed settlement and appointed an investigator in June 2001. The insured filed a complaint b…

SBI General Insurance issued a fire insurance policy to Krish Spinning, which settled the first fire claim by a discharge voucher and payment of Rs 84,19,579. Krish Spinning later disputed the quantum of the settlement, alleging coercion, and invoked the arbitration clause in the policy by filing a Section 11(6) applic…

The Commissioner of Income Tax appealed against Oriental Fire & General Insurance Co. Ltd, contending that the insurer could not claim deductions for a provision for taxation and a reserve for bad and doubtful debts. The Supreme Court examined the computation of income for insurance businesses under Section 44 of the I…

The Supreme Court examined whether a motor insurer can appeal a Motor Accidents Claims Tribunal award under Section 173 of the Motor Vehicles Act, 1988 when the insured has not filed an appeal. It held that an insurer’s right of appeal is limited to the statutory defences listed in Section 149(2) and cannot be used to …

The owner of a bus paid the premium for a motor vehicle insurance policy by cheque, which later bounced. The bus was involved in an accident causing the death of a passenger, and the claimants sought compensation from the insurer, United India Insurance Co. Ltd. The insurer argued that the policy was void due to non-pa…

The petitioners held mediclaim policies with United India Insurance Co. Ltd., a subsidiary of the General Insurance Corporation of India, and paid premiums annually. After several claims, the insurer refused to renew the policies, citing high claim ratios and pre‑existing diseases. The Gujarat High Court ordered renewa…

The appellant, a widow, claimed that her deceased husband had paid an insurance premium for a loan secured by Shriram City Union Finance Ltd., but the finance company delayed forwarding the premium to its sister insurance company, resulting in a failure to activate the policy. The District Forum and State Commission he…

The deceased Baljit Singh was killed when his scooter was hit by a bus on 18 March 1996. His family claimed compensation under Section 166 of the Motor Vehicles Act and the Tribunal awarded Rs 7.96 lakh. The insurer argued that the cover note was issued on 15 March 1996 but was to take effect from 19 March 1996, so it …

The appellant's daughter was killed when a tempo, owned and driven by Respondent No.2, ran over her. The vehicle was insured with National Insurance Co., but the insurer claimed the policy was cancelled because the premium cheque was dishonoured, invoking Section 64‑VB of the Insurance Act, 1938. The Motor Accidents Cl…

PGF Limited, which sold and developed agricultural land and ran joint‑venture schemes, was directed by SEBI to cease collecting money and to refund investors, on the ground that its activities constituted a collective investment scheme (CIS) under Section 11AA of the SEBI Act. PGF challenged the SEBI order and the cons…

The Supreme Court examined an appeal by Satwant Kaur Sandhu challenging the repudiation of a mediclaim policy by New India Assurance Company Ltd. The insurer rejected the claim on the ground that the deceased had concealed his chronic renal failure and diabetes in the proposal form, which the Court held to be material …

The Life Insurance Corporation (LIC) introduced a low‑premium term insurance policy (Table 58) but limited its availability to persons employed in government, semi‑government or reputed commercial firms. Several applicants were denied coverage and challenged the restriction as arbitrary and violative of Articles 14, 19…

The appellant, daughter and nominee of a deceased insured, claimed death benefits under two life insurance policies, which the insurer repudiated alleging that the insured had concealed multiple other policies. The insurer relied on an unauthenticated tabulation of fifteen alleged policies without producing any documen…

The appellants held an annual medical insurance policy with United India Insurance that was renewed each year. For the 2008‑09 renewal the insurer introduced a cap on coverage for certain procedures, notably angioplasty, without informing the policyholders, who believed they were merely renewing the existing policy on …

The appellant, New India Assurance Co., insured a heavy truck owned by the respondent, Pradeep Kumar, which was damaged in an accident. The respondent repaired the vehicle using a bank loan and claimed the repair expenses plus interest from the insurer. The insurer relied on reports of two approved surveyors and offere…

A bus was insured by Oriental Insurance Co. Ltd. on 30 November 1989. The premium was paid by cheque which later bounced, and the insurer sent a notice that it was not at risk. The premium was finally paid in cash on 2 May 1990, but the bus met with an accident on 19 April 1990, killing the truck driver. The driver’s w…

The assessees purchased deferred annuity policies and claimed exemption from wealth tax under section 5(1)(vi) of the Wealth Tax Act, 1957, arguing that such policies fell within the phrase "any policy of insurance". The Wealth Tax Officer rejected the claim, but the Appellate Assistant Commissioner, the Income Tax App…

The insured's factory suffered a fire and the insurer, New India Assurance Co., appointed a surveyor, joint surveyors, and later an investigator who alleged arson, before seeking the opinion of former Chief Justice Y.V. Chandrachud who concluded the fire was accidental. The National Consumer Disputes Redressal Commissi…

Krishna Food & Baking Industry Ltd. and its sister concern operated bakery units in Srinagar that were destroyed by a terrorist fire in 1991. The companies had three insurance policies covering terrorism and fire and claimed full loss for building, plant, machinery, raw materials and stocks. The National Consumer Dispu…

The appellant purchased a 25‑year endowment life insurance policy in 1993, paid premiums for 31 quarters, and in 2001 took a loan of Rs 15,000 against the policy before stopping premium payments. He sought the surrender value, and LIC offered Rs 2,268 after deducting the loan and interest, which the District Consumer F…

New India Assurance Co. issued a motor vehicle insurance policy for a truck on 8 November 1991. The same night the truck met with an accident that killed a cleaner and two labourers. The dependants of the deceased filed claims for compensation, but the insurer denied liability, arguing that the policy was cancelled aft…

Karan Singh Chandel purchased a LIC life insurance policy on 28‑03‑1994. The annual premium due on 28‑03‑1995 was not paid and the policy lapsed after a one‑month grace period. The insured died on 01‑07‑1995. A cheque for the premium and late fee was issued on 27‑06‑1995 but was only received by LIC on 12‑07‑1995, afte…

The Supreme Court examined whether a nominee under Section 39 of the Insurance Act, 1938 acquires a beneficial interest in the proceeds of a life‑insurance policy when the assured dies intestate. The deceased, governed by the Hindu Succession Act, 1956, had nominated his wife as the sole nominee. The wife claimed exclu…

The insured imported two machines and obtained transit insurance. During road transport only the printer machine was damaged; the film processor remained functional. Surveyor reports and the manufacturer’s engineer confirmed that the printer was extensively damaged and could not be repaired in India, while the film pro…

The appellants, heirs of a deceased passenger, claimed compensation under Section 166 of the Motor Vehicles Act, 1988 for death incurred while travelling in a private car. The Motor Accident Claims Tribunal awarded compensation, which was set aside by the Karnataka High Court on the ground that the insurance policy did…

The insurer, National Insurance Co. Ltd., issued a cover note for a mini‑bus after receiving a third‑party cheque for the premium, but the cheque was never encashed and the cover note was cancelled. The bus met with an accident and the victim, Yellamma, claimed compensation under s.166 of the Motor Vehicles Act, 1988. …

Genus Power Infrastructure Ltd., the insured, suffered fire damage and claimed under a fire policy issued by New India Assurance Ltd. The insurer assessed the loss and the parties executed a letter of subrogation on 11 March 2011, wherein the insured accepted Rs 5.96 crore as full and final settlement. Three weeks late…

The appeal arose from a motor accident in which the deceased, Mr. T. Ramu, was killed when his car was rear‑ended by a lorry; his legal representatives claimed compensation from National Insurance Co. Ltd., the insurer of the vehicle. The High Court had held that the policy was a comprehensive one and thus covered the …

The Supreme Court examined the legality of the General Insurance (Rationalisation of Pay Scales and Other Conditions of Service of Development Staff) Amendment Scheme, 2003, which altered cost‑ratio calculations, incentive structures, transfer policies and career prospects for Development Officers. The petitioners argu…

The appellant United India Insurance issued a Standard Fire & Special Perils (SFSP) policy to Levi Strauss (India) for fire loss, while Levi also held a global Open Marine Insurance (STP) policy issued by Allianz covering the same goods. After a fire, Levi claimed under the SFSP policy, but the insurer denied liability…

The Supreme Court considered whether the principles laid down in National Insurance Co. Ltd. v. Swaran Singh (2004) apply to insurance claims other than third‑party risks, particularly own‑damage claims. It held that Section 149 of the Motor Vehicles Act, 1988, which imposes a duty on insurers to satisfy judgments for …