Holding

The policy’s definition of burglary requiring forcible and violent entry is controlling, so the insurer is not liable for theft without such force.

Summary

The insured, M/s Harchand Raj Chandan Lal, purchased a burglary insurance policy from United India Insurance Co. Ltd. that defined "burglary" as theft involving forcible and violent entry. During the policy period, bags of grain were stolen from the insured's godown without any force or violence, and the insurer denied the claim. The District Forum, State Commission, and National Commission each held that burglary includes theft and awarded compensation. On appeal, the Supreme Court held that the policy’s definition is a contractual term that requires a condition precedent of force or violence; therefore the insurer was entitled to repudiate the claim. While the Court set aside the lower orders, it declined to recover the compensation already paid on equitable grounds.

Issues considered

Whether the definition of "burglary" in the insurance policy, requiring forcible and violent entry, is controlling and excludes theft without such force.
Whether the consumer forums erred in interpreting burglary to include simple theft.
Whether the insurer is liable to pay compensation for the loss of grain bags.
Whether the compensation already paid by the insurer can be recovered.

Legislation cited

Consumer Protection Act, 1986s. 2(g), s. 2(J)(c)(ii), s. 2(o)
Indian Contract Act, 1872s. 37

Subjects

insuranceburglarycontract interpretationconsumer protectionpolicy definitionforce and violenceclaim repudiationstrict constructionequity

Judgment

A UNITED INDIA INSURANCE CO. LTD.
V.

M/S. HARCHAND RAJ CHANDAN LAL

SEPTEMBER 24, 2004

B [S.N. VARIAVA AND A.K. MATHUR, JJ.]

Insurance:

Insurance policy- "Burglary"-Jnsurance policy defined the word
"burglary" as theft preceded by use of force or violence-During the
C currency of the insurance policy insured noticed that some bags of food
grains were stolen-But Insurance company repudiated the claim of the
insured as theft was not preceded by use of force or violence-However,
Consumer Forums below allowed the claim of the insured and awarded
compensation to him-Correctness of-Held: The insurance policy is a
D contract between the parties and they are bound by its terms-The element
offorce or violence is a condition precedent for burglary-Therefore, in the
absence ofviolence or force the insured cannot claim indemnification against
the insurance company-The terms ofthe policy have to be construed as they
are-It is not permissible to add, subtract or substitute something in the terms
of the policy-The terms of the policy shall govern the contract between the
E parties-They have to abide by the definition given therein-They cannot rely
on other definitions given in other enactments like criminal law-Hence,
compensation awarded set aside-However, no order passed for recovery of
compensation already given-But suggestions made for suitably amending
the terms ofthe policy so that the word "burglary" is given a meaning which
F is closer to the realities of life so that the common man easily understands
its meaning-Consumer Protection Act, 1986, Ss. 2(J)(c)(ii), (g) & (o).

Contract Act, 1872:

Section 37-Contracts-Terms of-Construction-Obligation of
G parties-Held; The terms ofthe contract have to be strictly read-No outside
aid should be sought unless the meaning is ambiguous.

Words & Phrases:

"Theft"-Meaning of-Jn the context ofSection 378 of the Penal Code,
H 1860.
662
UNITED INDIA INSURANCE CO. LTD. v. HARCHAND RAI CHANDAN LAL 663

"Burglary"-Meaning of A
The respondent-insured took out a policy from the appellant-insurer
against burglary and for housebreaking. The word "burglary" was
defined in the policy as theft preceded by use of force or violence. During
the currency of the policy, the respondent had noticed that some bags
of food grains were stolen. Therefore, the respoudc.ut raised a claim B
against the appellant-insurer under the ·aforesaid policy for incurring
the aforesaid loss by theft. The appellant repudiated the claim of the
respondent on the ground that theft was not covered by the insurance
policy as no burglary took place in the godown by use of force or violence.
c
The Consumer Disputes Redressal Forum-II allowed. the
respondent's claim on the ground that burglary included theft. The
State Consumer Disputes Redressal Commission and the National
Consumer Disputes Redressal Commission affirmed this decision. Hence
the appeal.
D
The following question arose before the Court :

Whether in terms of the insurance policy, the. repudiation of the
claim of the respondent by the appellant-company was justified or not?

Allowing the appeal, the Court
E

HELD: 1. The definition given in the policy is binding on both the
parties. The policy is a contract between the parties and both the parties
are bound by the terms of the contract. The definition of the word
"burglary", followed with violence makes it clear that if any theft is F
committed it should necessarily precede with violence i.e. entry into the
premises for committing theft should involve force or violence or threat
to the insured or to his employees or the members of his family.
Therefore, the element of force and violence is a condition precedent for
burglary ·and housebreaking. The term 'burglary' as defined in the
English Dictionary means an illegal entry into the building with an
G
intent to commit crime such as theft. But in the absence of violence or
force the insured cannot, claim indemnification against the insurance
company. The terms of the policy have to be construed as they are and
the Court cannot add or subtract something. Howsoever liberally one
may construe the policy' one cannot take liberalism to the extent of H
664 SUPREME COURT REPORTS [2004] SUPP. 4 S.C.R.

A substituting the words, which are not intended. It is true that in common
parlance the term 'burglary' would mean theft but it has to be preceded
with force or violence. If the element of force and violence is not present
then the insured cannot claim compensation against theft from the
insurance company. [668-A-D]
B George and the Goldsmiths and General Burglary Insurance Association
Ltd, [1899) 1 QB 595 and Dino Services Ltd. v. Prudential Assurance Co.
Ltd., (1989] 1 All ER 422, referred to.
....
· Halsbury's Laws of England 4th Edn. (203rd Reissue) Para 646 and
C American Jurisprudence 2nd Vol. 44 P. 1401, referred to.

2; It is possible that an insured may sustain loss in technical terms
of the criminal la~, but no relief can be given to him unless his case is
covered by the terms of the policy. It is not open to interpret the
expression appearing in the policy in terms of common law; but a
D meaning has to be given to the expression as defined in the policy. The
act that causes the loss must fall within the definition in the policy and
it cannot take the cover and. contents of the definition as laid down in
the criminal law. Therefore, when the word 'burglary' has been defined
in the policy then the case should fall within that definition. Once a
E party has agreed to a particular definition, he is bound by it and the
definition given in criminal law will be of no avail. [671-H; 672-A-B]

National Insurance Company Ltd v. Public Type College, II (2001)
CPJ 26 (NC), overruled.

F 3. It is settled law that the terms of the policy shall govern the
contract between the parties and that they have to abide by the definition
given therein and all those expressions appearing in the policy should be
interpreted with reference to the terms of the policy and not with
reference to the definition given in other laws. It is a matter of contract
and in terms of the contract the relation of the parties shall abide and
G it is presumed that when the parties have entered into a contract of
insurance with their eyes wide open, they cannot rely on the definitions
given in other enactments. [672-C-D]

National Insurance Company Ltd v. Public Type College IL (2001)·
H CPJ 26 (NC), overruled.
UNITED INDIA INSURANCE CO. LTD. v. HARCHAND RA! CHAND AN LAL 665

4. It is settled law that the terms of the contract have to be strictly A
read and the natural meaning be given to it. No outside aid should be
sought unless the meaning is ambiguous. (674-C]

Oriental Insurance Co. Ltd. v. Samayanallur Primary Agricultural Co-
op. Bank, AIR (2000) 87 SC 10; Oriental Insurance Co. Ltd. v. Sony
Cheriyan, [1999) 6 SCC 451 and General Assuran.;e Society Ltd. v. B
Chandumull Jain, (1966) 3 SCR 500, relied on.

5.1. Theft should have preceded with force or violence as per the
terms of the insurance policy. In order to substantiate a claim an insured
has to establish that the theft or burglary took place preceding with C
force or violence and if it is not, then the insurance company will be well
within its right to repudiate the claim of the insured. [674-D)

5.2. However, all th·e three forum·s have already awarded
compensation an~ the amount has been paid to the respondent. Therefore,
on the point of equity, payment, which has already been made, is not D
disturbed. [674-E]

6. The terms of the policy as laid down by the Insurance Company
should be suitably amended· by the Insurance Company so as to make
it more viable and facilitate the claimants to make their claims. The
definition of the word "burglary" is so stringent in the present case that E
it gives rise to a difficult situation for the common man to understand
that in order to maintain his claim he will have to necessarily show
evidence of violence or force. The definition of the word 'burglary'
should be given a meaning, which is closer to the realities of life. The
common man understands that he has taken out the policy against theft. F
He hardly understands whether it should precede violence or force.
Therefore, a policy should be a meaningful policy so that a common
man can understand what is the meaning of burglary in common
parlance. Though the present policy has been interpreted strictly in
terms of the policy but it is hoped that the Insurance Companies will
· amend their policies so as to make them more meaningful to the public
G
at large. It should have the meaning, which a common man can easily
understand rather than become more technical so as to defeat the cause
of the public at large. [674-F-H; 67S-A)
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 6277of2004. H
666 SUPREME COURT REPORTS [2004] SUPP. 4 S.C.R.

A From the Judgment and Order dated 20.5.2003 of the National Consumers
Disputes Reddressal Commissi~n, New Delhi in R.P. No. 2159 of 2002.

P.P. Malhotra, Additional Solicitor General A.K. De and Ashok K.
Mahajan for the Appellant.
B Sudarsh Menon and Bharat Swaroop Sharma for the Respondent.

The Judgment of the Court was delivered by

A.K. MATHUR, J. : Leave granted.
c This appeal is directed against the order passed by the National
Consumer Disputes Redressal Commission, New Delhi in Revision. Petition.
No.2159 of 2002 confirming the order passed by the State Consumer
Disputes Redressal Commission, New Delhi as well as the order passed by
the Consumer Disputes Redressal Forum-II (District Forum II), New Delhi.
D
The brief facts which are necessary for the disposal of the appeal are
as follows. The respondent took out a policy by the appellant company for
a sum of Rs. 7 lacs against burglary and/or house breaking policy with effect
from September 22, 1991 to September 21, 1992. Necessary provisions of
E the policy read as under:

"THE COMPANY HEREBY AGREES subject to the terms and
conditions contained herein endorsed/ or otherwise expressed hereon
that if,

F (a) The property hereinafter described or any part thereof be
LOST or DAMAGED by BURGLARY and/or HOUSE
BREAKING or

(b) ANY DAMAGE be caused to the premises to be made good
by the Insured from BURGLARY and/or HOUSE BREAKING
G or any attempt thereat."

The term "Burglary and/or Housebreaking" has been defined· in terms
of the policy also which reads as under.

H "Burglary and/or Housebreaking shall mean theft involving entry to
UNITED INDIA INSURANCE CO.LTD. 1·. HARCHAND RAI CHANDAN LAL [A.K. ":IA THUR, J.) 667

or exit from the premises stated therein by forcible and violent A
means or following assault or violence or threat thereof to the
insured or to his employees or to the members of his family"

There are exceptions to it with which we are not concerned. During the
currency of the policy, the respondent had his stock of food grains kept in B
godown No.48, Srinagar Colony, Bharat Nagar, New Delhi. Shri Ashok
Kumar Bansal, one of the partners of the respondent visited his godown on
July 2, 1992 and there he found out that 197 bags of gwar were stolen. An
F.l.R. was lodged at Police Station Sarai Roliilla under Section 380 of the
Indian Penal Code on July 24, 1992. Therefore, the respondent raised a claim
against the appellant company under the aforesaid policy for incurring the C
aforesaid loss by theft. The appellant company repudiated the claim of the
respondent on the ground that theft is not covered by the insurance policy
as no burglary took place in the godown by use of force or violence.
Therefore, the respondent approached the Consumer Disputes Redressal
Forum-II (District Forum) and made a claim for the loss of 197 bags of gwar. D
The appellant company contested the claim and took the stand that the claim
is not covered as per the insurance policy. However, the District Forum
overruled the objection and held that burglary includes theft and by its order

.. dated June 1, 1998 directed the appellant company to release the claim of
the respondent within two months with interest at the rate of 15% per annum
and also awarded cost quantified at Rs.1,000. Aggrieved against the said E
order of the District Forum the appellant company preferred an appeal before
the State Consumer Disputes Redressal Commission, New Delhi which was
registered as Appeal No.881of1998. The State Commission also by its order
dated June 19,2002 upheld the claim of the respondent taking the view that
notwithstanding the definition of the term 'burglary and/or housebreaking' F
as defined in the policy, burglary includes theft also. It also relied upon a
decision of the National Consumer Disputes Redressal Commission in the
case of National Insurance Company Ltd. v. Public Type College reported
in II (2001) CPJ 26(NC). The State Commission thus dismissed the appeal
filed by the appellant company. Aggrieved by the said order of the State
Commission a revision was filed before the National Consumer Disputes G
Redressal Co~mission. The National Commission by its impugned order
affirmed the claim of the respondent and dismissed revision on May 20, 2003.
Hence, the present appeal by wa~ of special leave.

The question before us is whether in terms of the policy, the repudiation H
668 SUPREME COURT REPORTS [2004] SUPP. 4 S.C.R.

A of the claim of the respondent by the appellant company is justified or not.
We have already reproduced the terms of the policy as also the definition
of burglary and/or housebreaking as defined in the policy. The definition
given in the policy is binding on both the parties. The policy is a contract
between the parties and both parties are bound by the terms of contract. A~
B per the definition of the word burglary, followed with violence makes it clear
that if any theft is committed it should necessarily precede with violence i.e.
entry into ~he premises for committing theft should involve force or violence
or threat to insurer or to his employees or to the members of his family.
Therefore, the element of force and violence is a condition precedent for
burglary arid housebreaking. The term 'burglary' as defint:d in the English
c Dictionary means an illegal entry into the building with an i~tent to comm.it
crime such as theft. But in absence of violence or force the insurer cannot
claim indemnification against the insurance company. The terms of the policy
have to be construed as it is and we cannot add or subtract something.
Howsoever liberally we may construe the policy but we cannot take
D liberalism to the extent of substituting the words which are not intended. It
is true that in- common parlance the term 'burglary' would mean theft but
it has to be preceded with force or violence. If the element of force and
violence is not present then the insurer cannot claim compensation against
theft from the insurance company. This expression appearing in the insurance
policy came up for interpretation before the English Court and the English
E Courts in no uncertain terms laid down that burglary or theft has to be
precec!ed with force·or violence in order to be indemnified by the insurance
company. In th.is connection reference may be made the statement of law as
summarized in Halsbury's Laws of England Fourth Edition (203 Reissue)
Para 646. It reads as under:
F
"646. Forcible and violent entry. The terms of a burglary insurance
may exclude liability in certain circumstances unless there is forcible
and violent entry into the premises. If so, the entry must be obtained
by the use of both force and violence or the definition is not satisfied
and the policy does not apply. An entry obtained by turning the
G handle of an outside door or by using a skeleton key, though
sufficient to constitute a criminal offence, is not within the policy
since the element of violence is absent. However, an entry obtained
by picking the lock or forcing back the catch by means of an
instrument involves the use of violence and is therefore covered. The
H policy may be so framed as to apply only to violent entry from the
UNITED INDIA INSURANCE CO. LTD. v. HARCHAND RA! CHANDAN LAL [A.K. MATHUR, J.] 669

outside; or the violent entry into a room within the insured premises A
may be sufficient. In any case, the violence must be connected with
the act of entry; if the entry is obtained without violence, the
subsequent use of violence to effect the theft, as for instance where
a show-case is broken open, does not bring the loss within the
~~~ B
In this connection, a reference may be made to an earlier decision
(Queen's Bench Division) in re George and the Goldsmiths and General
Burg/my Insurance Association, Limited reported in (1899) 1 Q.B.595. In
this case, a policy was taken out for loss or damage by burglary and
housebreaking. A theft took place at premises No. 78, Strand, in' a shop where C
the front door was shut but not locked or bolted and access to the shop could
be obtained by turning the handle of the door. In the early morning before
business hours, during the temporary absence of a servant of the assured,
some person opened the front door, entered the shop, and breaking open a
locked-up compartment or show-case and certain properties were stolen. D
Reversing the judgment of the Divisional Court, the Court of Appeal held
that the loss which has occurred as above mentionM was not covered by the
policy. Two propositions were advanced before the Court. The first that an
entry effected by the exercise of any force, however slight, was sufficient to
constitute an entry within the meaning of policy. The contention was
advanced that pushing a door open, if it were a jar, or turning the handle of E
a door, ifthe door were shut and could be opened in that way, was sufficient
force to satisfy the l'anguage of the policy. The second proposition was that
if that was so, and therefore it could not be said that the original entry in the
case was effected by force within the meaning of the policy, ye~ nevertheless,
the language of the policy was satisfied by the fact that the thief, after having F
entered the shop without force, proceeded to prise off an iron plate to which
a locked padlock was attached securing a show-case in which valuables were
placed. Their Lordships considered both the propositions and after reproducing
the definition, observed that as per the plain reading of the expression used
in terms of the policy violence is a condition precedent. The Court of Appeal
reversed the decision of Queen's Bench. This view was G
reitereated subsequently in the case of Dino Services Ltd v. Prudential
Assurance Co. Ltd reported in (1989) 1 All ER 422. In this case also the
proposition of law as enunciated in the case of George and Goldsmith and
General Burglary [nsurance Association Ltd. was reaffirmed. lt was held as
~~~: H
670 SUPREME COURT REPORTS (2004) SUPP. 4 S.C.R.

A "In the context of a policy of insurance against theft from
premises by 'forcible and violent' means of entry, the word 'violent'
was to be construed according to its ordinary meaning and meant
entry by the use of any force which was accentuated or accompanied
by a physical act which could properly be described as violent in
nature and character. In the context of such a policy the word
B
'violent' accordingly referred to the physical character of the means
of entry and not merely to its unlawful character. It followed that
the thieves, by gaining entry to the premises simply by using the
proper keys to unlock the doors of the premises, had not entered the
premises by 'violent' means. Accordingly, the plaintiffs loss was
c not covered by the policy. The appeal would therefore be allowed."

Similarly, view has been expressed by American Courts also in
American Jurisprudence 2nd {Vol. 44) 1401 which is as follows:

"1401- Provisions as to visible marks or evidence, or use offorce
D or violence

It is not uncommon for insurance companies to include in their theft
or burglary policies provisions restricting their liability to cases
where there were some "visible marks" or "visible evidence" of the
E use of force or violence. It is generally competent for an insurer to
insert such a clause in the contract of insurance, and since such a
provision is unambiguous it does not justify the applicable of the
general principle that the insurance policy will be construed most
favourable to the insured. However, the courts will not read such
a requirement into a policy and do not require compliance with such
F clauses unless the unmistakable language of the policy so requires.

Such a policy requirement has been considered either as a limitation
on the liability of the insurer or as a rule characterizing the evidence
upon which liability must be predicated, but in either event, the
validity of the requirement has been recognized and rarely questioned,
G
although in at least one instance such a requirement has been held
in contravention of public policy under the particular terms of the
policy involved and the particular circumstances.

Just as policies insuring against burglary of an insured's premises
H commonly require visible marks upon the insured's premises or
UNITED INDIA INSURANCE CO. LTD. v. HARCHAND RAI CHANDAN LAL [A.K. MATHUR, J.) 671

upon the exterior of the insured's premises, so also do safe-burglary A
policies commonly require visible marks either upon the insured's
safe, or upon the exterior of the insured's safe, or upon the exterior
of the doors of the insured's safe, and in some instances the
requirement of visible marks or visible evidence has been imposed
in policies pertaining to theft of property from an insured's B
automobile.

The determination of what constitutes visible marks or visible
evidence within the meaning of such a provision, and of where such
marks or evidence must be located in order to satisfy the policy
requirement, is to a great extent depend upon the particular facts c
involved in relation to the specific requirements imposed by the
policy. Where, for example, a burglary or theft policy requires that
there must be visible marks of force or violence "at the place of
entry" into the premises, this requirement has been held complied
with if the visible marks are only on one of the outer doors to the D
insured's premises, which the burglars or thieves must have used to
accomplish their deed. However, under such a requirement, if the
only visible marks are those on inside doors which are not at the
entrance to the premises, recovery will be denied. Similarly, a policy
providing against loss by burglary by felonious entry into; a safe by E
actual force evidenced by visible marks made upon the exterior of
all the doors does not cover loss sustained by felonious entry into
the safe by a manipulation of the lock on the outer door with no
visible marks made thereon, although the inner door of the safe did
contain such marks, although there is contrary authority. The
opening of a safe by manipulation of the combination within the F
period covered by a policy of burglary insurance which was made
possible by force applied to the safe before such period, leaving
visible marks upon the safe, was not within the terms of the policy
insuring against loss through felonious entry into the safe by actual
force and violence, leaving visible marks upon the safe and occurring G
within the policy period, with an exemption from liability from loss
effected by opening the safe by manipulation of the lock."

It is possible that an insurer may sustain loss in technical terms of the criminal
law, but no relief can be given to him unless his case is covered by the terms
H
672 SUPREME COURT REPORTS [2004] SUPP. 4 S.C.R.

A of the policy. It is not open to interpret the expression appearing in policy
in terms of common law; but it has to give meaning to the expression as
defined in the policy. The act that causes the loss must fall within the
definition in the policy and it cannot take the cover and contents of the
definition as laid down in the criminal law. Therefore, when the definition
of the word 'burglary' has been defined in the policy then the cause should
B
fall within that definition. Once a party has agreed to a particular definition,
he is bound by it and the definition of criminal law will be of no avail. In
this connection, the decision of the National Consumer Disputes Redressal
Commission in the case of National Insurance Company Ltd v. Public Type
College which has taken the colour and content of the definition given in the
c criminal law does not lay down the correct proposition of law. It is settled
law that terms of the policy shall govern the contract between the parties,
they have to abide by the definition given therein and all those expressions
appearing in the policy should be interpreted with reference to the terms of
policy and not with reference to the definition given in other laws. It is a
matter of contract and in terms of the contract the relation of the parties shall
D abide and it is presumed that when the parties have entered into a contract
of insurance with their eyes wide open, they cannot rely on definitibn given
in other enactment. Thus, the decision of the National Consumer Disputes
Redressal Commission in the case of National Insurance Company Ltd. v.
Public Type College is not a good law and all the Tribunals i.e. National
E Consumer Disputes Redressal Commission, State Commission & District
Forum having applied the ratio of that case; the impugned order cannot be
sustained.

Reference in this connection may be made to the decision of this Court
in the case of Oriental Insurance Co. Ltd v. Samayanal/ur Primary
F Agricultural Co-op. Bank reported in AIR (2000) 87 SC 10. In this case
question came for interpretation of the similar policy, i.e., policy against
burglary. The Bank had two insurance policies with the Oriental Insurance
Company Ltd. out of which one was cash insurance policy for Rs. I lakh
and the second was a burglary insurance policy for Rs. 25 lakhs. The relevant
G terms of the policy were

"3(a)- Are all valuables secured in Burglary resistance safes when
Premises are locked Yes

(b) If so, state name or maker of safe and cost Tansi"
H
UNITED INDIA INSURANCE CO. LTD. v. HARCHAND RAI CHANDAN LAL [A.K. MATHUR, J.] 673

The answer to the question 3(a) was in positive. The question arose that A
according to the complaint burglary took place from the cashier's cash box.
The surveyor's report was that the stolen jewels had not been kept in safe.
locker and the theft was not covered under burglary insurance policy. Though
the District Forum directed the insurance company to pay a sum of Rs.
43,729.25 however, the State Commission observed that what is insured is
not the contents of the cash box but the jewels kept in the safe which means
B
a safety locker made by Tansi as agreed to in the proposal fonn. And it was
observed that jewels kept ,in the cashier's cash box which were not covered
by the policy. The State forum overruled the order passed by the District
Forum. The order passed by the State Commission in revision was reversed
by the National Commission. The matter came before this Court in Special c
Leave Petition by Insurance Company. Their Lordships' observed that there
·was no necessity of referring to the dictionaries for understanding the
meaning of the word "safe" which the parties in the instant case are proved
to have understood while submitting the proposal and accepting the insurance
policy. The cashier's box could not be equated with the safe within the
meaning of the insurance policy. The alleged burglary and the removal of
D
the jewellery from cash box, the cash box was not covered by the· insurance
policy between the parties. The insurance policy has to be construed having
reference only to the stipulations contained in it and no artificial farfetched
meaning could be given to the words appearing in it. And, therefore, they
set aside the order of the National Commission. E
Similarly, in the case of Oriental Insurance Co. Ltd v. Sony Cheriyan
reported in [ 1999] 6 SCC 451 an insurance was taken out under the Motor
Vehicles Act, 1988 in which their Lordships' observed :

"The insurance policy between the insurer and the insured represents F
a contract between the parties. Since the insurer undertakes to
compensate the loss suffered by the insured on account of risks
covered by the insurance policy, the tenns of the agreement have
to be strictly construed to detennine the extent of liability of the
insurer. The insured cannot claim anything more than what is
covered by the insurance policy."
G

Similarly in the case of General Assurance Society Ltd v. Chandumull
Jain and Anr. reported in [ 1966] 3 SCR 500 the Constitution Bench has
observed that the policy document being a contract and it has to be read
strictly. It was observed, H
674 SUPREME COURT REPORTS [2004] SUPP. 4 S.C.R.

A "In interpreting documents relating to a contract of insurance,
the duty of the court is to interpret the words in which the contract
is expressed by the parties, because it is not for the court to make
a new contract, however reasonable, if the parties have not made it
themselves. Looking at the proposal, the letter of acceptance and the
B cover notes, it is clear that a contract of insurance under the standard
policy for fire and extended to cover flood, cyclone etc. had come
into being."

Therefore, it is settled law that the terms of the contract has to be strictly
read and natural meaning be given to it. No outside aid should be sought
c unless the meaning is ambiguous.

From the above discussion, we are of the opinion that theft should have
preceded with force or violence as per the terms of insurance policy. In order
to substantiate a claim an insurer has to establish that theft or burglary took
place preceding with force or violence and if it is not, then the insurance
D
company will be well within their right to repudiate the claim of the insurer.

However, all the three forums have already awarded compensation and
the amount has been paid to the respondent, therefore, on the point of equity
we would not like to disturb the payment which has already been made.
E However, in view of legal position stated by us, the orders of the District
Forum, State Commission and the National Commission cannot be upheld.

But before parting with the case we would like to observe that the terms
of the policy as laid down by the Insurance Company should be suitably
amended by the Insurance Company so as to make it more viable and
F facilitate the claimants to make their claim. The definition is so stringent in
the. present case that it gives rise to difficult situation for the common man
to understand that in order to maintain their claim they will have to
necessarily show evidence of violence or force. The definition of the word
burglary should be given meaning which is closer to the realities of life. The
G common man understands that he has taken out the Policy against theft. He
hardly understands whether it should precede violence or force. Therefore,
a policy should be a meaningful policy so that a common man can understand
what is the meaning of burglary in common parlance. Though we have
interpreted the present policy .strictly in terms of the policy but we hope that
the Insurance Companies will amend their policies so as to make them more
H
UNITED INDIA INSURANCE CO. LTD. v. HARCHAND RAI CHANDAN LAL [A.K. MATHUR, J.) 675

meaningful to the public at large. It should have the:; meaning which a A
common man can easily understand rather than become more technical so
as to defeat the cause of the public at large.

In the result, we allow this appeal, set aside the order passed by the
National Consumer Disputes Redressal Commission, New Delhi confirming B
the order of the State Commission & District Forum. But the amount of
compensation which has already been paid to the respondent shall not be
recovered in the facts and circumstances of the present case. No order as to
costs.

v.s.s. Appeals allowed. C