Exemption Clauses In Insurance Contracts Are To Be Construed Against Insurer In Case Of Doubt : SC [Read Judgment]
4 years, 11 months ago

Exemption Clauses In Insurance Contracts Are To Be Construed Against Insurer In Case Of Doubt : SC [Read Judgment]

Live Law  

In a notable judgment in a motor accident compensation case, the Supreme Court applied the well-settled principle that exemption of liability clauses in insurance contracts are to be construed against the insurance company in case of ambiguity.Based on this principle of contra proferentum, a bench comprising Justices R F Nariman and S Ravindra Bhat restored the liability of New India. The main issue in the appeal before the Supreme Court was whether Dr. Gandhi should be treated as a regular employee of the Rotary Eye Institute or an independent professional giving service on contract. After examining a catena of decisions explaining the tests for determining a "Contract For Service", the Court concluded that Dr. Gandhi cannot be treated as a regular employee of the Eye Institute. The Court quoted from General Assurance Society Ltd. v. Chandumull Jain 3 SCR 500 as follows : ""in a contract of insurance there is requirement of uberrima fides i.e.

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History of this topic

Concealment Of A Non-Life-Threatening Condition Not Causing Death Should Not Invalidate An Insurance Claim: NCDRC
10 months ago

Concealment Of A Non-Life-Threatening Condition Not Causing Death Should Not Invalidate An Insurance Claim: NCDRC

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The National Consumer Disputes Redressal Commission, presided by Subhash Chandra, held Life Insurance Corporation liable for deficiency in service over invalidating an insurance case citing non-disclosure of prior non-life-threatening health conditions. Brief Facts of the Case The deceased husband of the complainant purchased two life insurance policies from the Life Insurance Corporation/insurer: Jeevan Tarang Policy for Rs. The primary reliance …

Insurance Claim Liable To Be Rejected If Premium Was Not Paid On Due Date : Supreme Court
3 years, 4 months ago

Insurance Claim Liable To Be Rejected If Premium Was Not Paid On Due Date : Supreme Court

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The Supreme Court observed that it is not permissible to rewrite the contract while interpreting the terms of the Insurance Policy.The bench of Justices Sanjiv Khanna and Bela M. Trivedi said that the terms of insurance policy have to be strictly construed. The bench of Justices Sanjiv Khanna and Bela M. Trivedi said that the terms of insurance policy have …

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