Shivram Chandra Jagarnath Cold Storage and Ors.
New India Assurance Company Limited and Ors.
I(2022)CPJ138(SC)
In this case, the insurance claim of the Insured arose under a deterioration of stock policy which covered the stock of potatoes stored by the insured in cold storage. The surveyor observed that the claim should be rejected in view of exceptions to the policy. Thus, the insurer disclaimed any liability. The Supreme Court discussed the role of exceptions in an insurance policy, wherein it was opined that an insurer seeks to indemnify the insured only against such losses that are caused by certain perils arising under normal conditions whose effects are statistically estimated. The Court observed that exceptions are inserted to exempt the liability of the insurer for which it would be otherwise liable. Excepted clauses are inserted ex abundanti cautela in insurance policies to inform the insured that losses attributable to excepted causes will not be indemnifiable. Since the exception, in this case, was neither too wide nor in conflict with the main purpose of the insurance policy, the claim was held to be correctly repudiated by the insurer, having regard to the specific exceptions in the policy.
