Case Brief

Supreme Court of India

Petitioner: Narsingh Ispat Ltd.

Respondent: Oriental Insurance Company Ltd. & Anr.

Date of Judgement: 2 May, 2022

CIVIL APPEAL NO. 10671 of 2016

Citation: 2022 SCC OnLine SC 535

Bench / Coram: Justices Ajay Rastogi, Abhay S. Oka

Statutes Referred:

The Insurance (Amendment) Act, 2002

Consumer Protection Act, 1986

Cases Referred:

National Insurance Co. Ltd. v. Ishar Das Madan Lal

United India Insurance Co. Ltd. v. Pushpalaya Printers

Peacock Plywood (P) Ltd. v. Oriental Insurance Co. Ltd.


Hon’ble Supreme Court of India has held that wherever an exclusionary clause is contained in a Insurance policy, it would be for the insurer to show that the case falls within the purview thereof. In a case of ambiguity, it is trite, the contract of insurance shall be construed in favour of the insured.

“The respondent has not discharged the burden of bringing the case within the four corners of the Exclusion Clause. When the policy itself defines the acts of terrorism in the Exclusion Clause, the terms of the policy being a concluded contract will govern the rights and liabilities of the parties.”

“Therefore, the parties cannot rely upon the definitions of ‘terrorism’ in various penal statutes since the Exclusion Clause contains an exhaustive definition of acts of terrorism.”

Drafted By – Abhijit Mishra

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