CASE - New India Assurance Co. Ltd. v. M/s Zuari Industries Ltd.

CITATION – AIR (2009) 9 SCC 70

BACKGROUND :
This case revolves around an insurance dispute. M/s Zuari Industries Ltd. had taken out a
comprehensive insurance policy from New India Assurance Co. Ltd. for their fertilizer plant. The
policy covered various risks, including fire damage.

Subsequently, a fire incident occurred at the fertilizer plant, resulting in significant damage. M/s Zuari
Industries Ltd. made a claim under the insurance policy, seeking compensation for the loss suffered
due to the fire. However, New India Assurance Co. Ltd. rejected the claim, citing certain policy
exclusions.

KEY ISSUE:

The key issue in this case was whether the damage caused by the fire fell within the scope of the
insurance policy or if it was excluded due to specific policy clauses.

SIGNIFICANCE:

The Supreme Court of India examined the terms and conditions of the insurance policy, particularly
the exclusions mentioned. The court analysed the nature and cause of the fire damage and determined
whether it was covered by the policy or excluded.

JUDGEMENT:

The Supreme Court of India carefully examined the terms and conditions of the insurance policy,
including any specific exclusions that might apply. The court considered the nature and cause of the
fire damage and assessed whether it met the criteria for coverage according to the policy.

The judgment in this case would have hinged on a detailed analysis of the policy language and the
specific circumstances surrounding the fire incident. The court would have determined whether M/s
Zuari Industries Ltd. was entitled to compensation for the damage suffered at their fertilizer plant
based on the policy terms and any applicable exclusions.

SUBMITTED BY PARTH
GUPTA

UILS, PANJAB
UNIVERSITY

4TH YEAR