Insurance claims can't be rejected on definitions of terrorism, says SC

The verdict came on a plea of Narsingh Ispat Ltd, the insurance claims of which under the Standard Fire and Special Perils Policy, was repudiated by the Oriental Insurance Company Ltd

In a significant verdict, the Supreme Court on Monday held that the parties, including insurance firms, cannot rely on definitions of terrorism in various penal laws to repudiate insurance claims which have to be governed by the definition of the term given in the policy.

The verdict came on a plea of Narsingh Ispat Ltd, a Jharkhand-based firm, the insurance claims of which under the Standard Fire and Special Perils Policy, was repudiated by the Oriental Insurance Company Ltd by taking recourse of the 'exclusion clause' in the policy regarding loss or damage caused by acts of terrorism.

The repudiation was upheld