In Brief
Oriental Insurance Co. appealed a National Commission order directing it to pay Rs. 4,68,33,840 under a Special Contingency Insurance Policy covering shortfalls in hydro power generation. The insurer alleged fraud through non-disclosure of prior hydrological data. The Court held no fraud or non-disclosure occurred because: the previous year's policy with another insurer was known to Oriental Insurance; available data was incorporated in the new policy; and the insurer had opportunity to request historical data before contracting. Cancellation was based on reinsurance constraints, not fraud allegations. The appeal was dismissed and the insurer directed to pay the remaining balance.
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