Recently, the Hon’ble Supreme Court of India, in the case titled Oriental Insurance Company Vs M/S Narbheram Power & Steel Ltd., adjudicated upon the interpretation of arbitration clauses under Insurance agreements/contracts. In the present case the Respondent entered into an Insurance Policy pertaining to “Fire Industrial All Risk Policy” with the Appellant in respect of the factory situated in Odisha.
In October 2013, a cyclone affected large parts of the state including the Respondent's factory. Respondent suffered damages estimated at INR 39,336,224. Accordingly, the appellant being the Insurer was informed and a surveyor was appointed. Based on the report of the surveyor, Respondent requested the Insurer to settle its claim. As the claim was not settled, Respondent invoked the arbitration agreement.
Read the full article and find out how Court interpreted clause 13 of the policy.