Heavy rain damage covered under policy for 'flood' and 'inundation'

The National Commission concluded that the policy's coverage for flood and inundation would include losses caused by heavy rains

Geekay International, a business specialising in cloth and garments, had secured a Standard Fire and Special Perils Policy from National Insurance Co. This policy provided coverage for stock stored at its business premises, which were leased under a leave and licence agreement.

During the policy period of 2011-2012, heavy rains struck Mumbai on August 18, 2011. The intense downpour led to a partial collapse of the building, including the premises housing the insured’s business. As a result, the stock suffered significant water damage.

The insured promptly informed the insurer, which then appointed a surveyor to assess the