In Brief
Bharat Watch Company insured its stock of watches with National Insurance Co. Ltd. After a theft without forcible entry, the insurer repudiated the claim citing an exclusionary clause. The case reached the Supreme Court via consumer dispute forums. The Court held that an insurer cannot rely on exclusionary conditions unless they were actually communicated to the insured. Since the District Forum and State Commission had found that exclusionary terms were never provided to the appellant, the National Commission erred in reversing their decisions based on an interpretation of the exclusion clause. The appeal was allowed and the original order was restored.
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