Delay in lodging of insurance claims is to be seen from the date of knowledge of the insured regarding loss; SC.

Supreme Court of India

JUSTICE R. SUBHASH REDDY & JUSTICE MOHAN M. SHANTANAGOUDAR

The SC {Oriental Insurance Co. Ltd. v. National Bulk Handling Corporation Pvt. Ltd.} holds that it is clear from the impugned order and other material placed on record, when it has come to the notice of the respondent, that mentha oil was substituted by water in the barrels, respondent undertook 100 per cent sampling, by sending the samples drawn from the barrels to the laboratory and such sampling was completed only on 12.11.2008 and the investigation report came to be submitted to the respondent-Company on 14.11.2008. Before that respondents were not aware of mentha oil substituted by water in all the barrels. Thereafter, claim was made before the appellant on 18.11.2008. 

It was held that in view of aforesaid it cannot be said that there is any delay on the part of the respondent in lodging the claim, so as to accept that there is breach of condition of the policy. And the appeal was accordingly dismissed by the SC.

In the present case, the question falling for consideration was whether there was a delay in lodging the complaint, as such, it is in violation of condition no.1 of the contract of insurance.