In Brief
The appellants held an insurance policy covering goods hypothecated with a bank under a cash credit facility. When a loss occurred involving STFI (Spontaneous Thermal Fire Ignition) perils, the insurer repudiated the claim citing policy exclusion. The appellants complained to the consumer commission alleging unfair trade practice. The State Commission upheld the complaint, but the National Commission reversed it. The Supreme Court dismissed the appeal, holding that the insured had notice of policy exclusions through receipt of the policy document and premium refund, and therefore cannot claim the repudiation was unfair. The insured had the option to obtain separate coverage for excluded perils.
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