In Brief
The appellants claimed insurance compensation for goods damaged by floods in Surat in 2005. Their insurer, New India Assurance, rejected the claim on the grounds that the policy for that period specifically excluded flood-related perils (STFI). The State Consumer Commission ordered compensation, but the National Commission reversed this. The Supreme Court upheld the National Commission, holding that since the policy was issued for a new location, it constituted a fresh contract—not a renewal—and the insurer was entitled to exclude STFI perils as a commercial decision. The appellants had received a copy of the policy and a refund of the premium for flood cover, yet made no protest. The Court dismissed the appeal, affirming that the insurer was not liable under the terms of the agreed contract."
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