As business operations seek to attain pre-pandemic levels of growth, insurance is one sector which could prove to be the pivot to sustainability.
Recent judicial interpretation rendered by Supreme Court to various principles of insurance law would prove to be a useful guide for both, Insurers/Insureds in matters relating to coverage.
Khatema Fibres Ltd.
vs.
New India Assurance Company Ltd. and Ors. IV(2021)CPJ1(SC)
Policy type- Standard Fire and Special Perils
In the instant case, the Supreme Court observed that in cases where the insurance company admitted the insured’s claim, to the extent of the loss as assessed by the surveyor, the jurisdiction of the special forum constituted under the Consumer Protection Act, 1986 is limited. To establish deficiency, the insured should be able to establish, that the surveyor did not comply with the code of conduct in respect of his duties, responsibilities and other professional requirements as specified by the Regulations made under the Insurance Act, 1938.
The Court finally held that a Consumer Forum which is primarily concerned with an allegation of deficiency in service cannot subject the surveyor’s report to forensic examination of its anatomy. Once it is found that there was no inadequacy in the quality, nature and manner of performance of the duties and responsibilities of the surveyor, in a manner prescribed by the Regulations as to their code of conduct and once it is found that the report is not based on ad hocism or vitiated by arbitrariness, then the jurisdiction of the Consumer Forum to go further would stop.
