In Brief
United India Insurance Co. Ltd issued a Standard Fire & Special Perils Policy to Levi Strauss covering warehouse stocks. When a fire occurred in 2008, Levi claimed Rs. 12.2 crores. The insurer repudiated the claim citing Condition No. 4, which excluded liability if risks were covered under a marine policy. Levi's parent company had a global marine policy (STP Policy) with Allianz covering worldwide inventory. The NCDRC allowed Levi's complaint, allowing a difference claim. The Supreme Court held that the STP Policy was a marine policy; Condition No. 4 therefore excluded the insurer's liability. Clause 47 applies only if law mandates domestic insurance; Section 25's prohibition against foreign insurance does not constitute such obligation. As Levi received substantial amounts from Allianz and insurance is a contract of indemnity, it could not recover more than actual loss or what it had already received. The appeal was allowed and Levi's complaint dismissed.
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