Insurance Company and Liability

*Supreme Court Directs Insurance Co. to Pay Interest Amount of more than Rs. 50 lacs in Addition to Principal Amount*

In a recent case of Orion Conmerx Pvt Ltd v. NICL [2025] GCtR 1634 (SC), where the insurance company had not paid the insurance claim within 30 days of date of loss,  Apex Court has directed the insurance company to pay interest amount of more than Rs. 50 lacs in addition to the principal amount of claim. 

In New India Assurance Company Limited and Others vs. Mudit Roadways [2023] GCtR 2514 (SC) it was held that, ‘the precise cause of a fire, whether attributed to a short-circuit or any alternative factor, remains immaterial, provided the claimant is not the instigator of the fire’. This categorically holds that the precise cause of fire is immaterial provided the Insured is not the instigator of the fire. This underscores the importance of insurers’ duty to act in good faith and honour its commitment to the Insured.