In Brief
Cement Corporation of India's factory caught fire during an attempted burglary when thieves used blow torches and gas cutters. The insurer, ICICI Lombard, rejected the fire damage claim arguing that theft—an excluded peril—was the proximate cause. The NCDRC upheld the rejection. The Supreme Court reversed this, holding that once fire (an insured peril) causes the loss, the cause of the fire is immaterial unless specifically excluded. Fire being the operative cause, not the antecedent burglary, the insurer must indemnify. Exclusion clauses in fire policies must be strictly construed. The matter was remitted to the NCDRC to assess the loss payable.
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