In Brief
JSK Industries purchased aluminum ingots via a marine cargo open insurance policy. One container was stolen in transit to their factory in Silvassa on 2 July 2010. The insurer repudiated the claim solely on grounds of exhausted coverage limit. The State and National Consumer Commissions dismissed the claim, introducing new grounds that the policy had been converted from general coverage to a sales turnover policy limited to specified factory locations. The Supreme Court held that an insurer cannot defend a claim on grounds not stated in the repudiation letter. The matter was remanded to the State Commission to decide whether sufficient balance remained at the material time, based solely on the grounds originally cited for repudiation."
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