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Supreme Court of India 2020-01-17 allowed

Sangrur Sales Corporation vs United India Insurance Company Limited & Anr

Bench: 2 — Dhananjaya Y Chandrachud, Hrishikesh Roy

In Brief

A shop insured under a fire and special perils policy collapsed due to excavation work carried out by a neighbour on an adjacent plot. The insurer repudiated the claim citing an exclusion for 'excavations'. The Supreme Court allowed the appeal, holding that the exclusion applies only to excavations carried out by the insured on his own property, not to third-party excavations on adjacent land. Where insurance policy language is ambiguous, the interpretation favourable to the insured prevails.">

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Insurance Law Consumer Protection Policy Exclusions Contract Interpretation

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