In Brief
Saurashtra Chemicals purchased a fire insurance policy covering coal and lignite stock, including an endorsement for spontaneous combustion. After claiming loss due to spontaneous combustion, the insurer repudiated the claim solely on the ground that spontaneous combustion alone (without resulting fire) was not covered. The insurer later claimed before the consumer forum that the claim was invalid due to delayed intimation—not mentioned in the repudiation letter. The Supreme Court held that an insurer cannot introduce new grounds of repudiation at the hearing stage; all grounds must be specified in the original repudiation letter. The appeal was allowed and the insurer was directed to pay the surveyor-assessed loss with interest.
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