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Supreme Court of India 2022-02-11 allowed

AINA CONSTRUCTION COMPANY vs THE ORIENTAL INSURANCE COMPANY LIMITED & ANR

Bench: 2 — Sanjiv Khanna, Bela M. Trivedi

In Brief

A vehicle owner insured with Oriental Insurance Company filed a claim for a truck stolen in November 2007. The owner lodged an FIR immediately, which led to arrests and a police untraceable report, but informed the insurance company about the loss only five months later. The insurer repudiated the claim solely on grounds of late notice. The District Forum and State Commission upheld the claim with interest. The Supreme Court affirmed, holding that delay in notifying the insurer does not justify claim rejection when the FIR was filed immediately and the claim was genuine. The duty to cooperate requires only breaches prejudicial to the insurer to be considered.

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Insurance Law Consumer Protection Contract Interpretation Insurance Claim Repudiation Theft

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