The Hon’ble Supreme Court has ruled in favour of the Insurance Company while adjudicating a claim of insurance, whereby a helicopter was insured and suffered damage. The Respondent’s claim was held to be beyond the ambit of the transit insurance policy. In the matter of Bajaj Allianz General Insurance Co. Ltd. and Ors. vs. The State of Madhya Pradesh MANU/SC/0410/2020
It was held that:
“ While construing a contract of insurance, it is not permissible for a court to substitute the terms of the contract. The court should always interpret the words used in a contract in a manner that will best express the intention of the parties. The NCDRC has incorrectly proceeded on the path that the ordinary course of transit would include assembling of the helicopter at New Delhi and the policy covered all risks till the time the helicopter did not reach Bhopal. The risks associated with the assembled helicopter were not covered within the purview of the policy, as the subject-matter which had been insured was a helicopter being transported in a packaged knocked down condition.”
