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Supreme Court of India 2024-05-16 allowed

United India Insurance Co. Ltd vs M/s Hyundai Engineering & Construction

Bench: 2 — Pamidighantam Sri Narasimha, Aravind Kumar

In Brief

A cable-stayed bridge under construction at Kota, Rajasthan collapsed in 2009, killing 48 workers. The contractors claimed Rs. 151+ crore under their All Risk Insurance Policy. The insurer rejected the claim, citing exclusions for defective design and workmanship. A Government Expert Committee found the collapse resulted from design flaws, construction deviations, and poor supervision. The NCDRC ordered the insurer to pay, relying on theoretical expert reports not adduced in evidence and NHAI's decision to let contractors finish the work. The Supreme Court reversed, holding that the insurer had discharged its burden by adducing credible, site-based evidence (surveyor's testimony and Expert Committee findings). Theoretical reports without witness examination carry less weight. NHAI's continued contract does not negate contractual exclusions once properly proved.

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