Contracts of Insurance VI

Vedic Resorts and Hotel Pvt. Ltd., at West Bengal, had obtained insurance policies. A mob of 200-250, in August, 2009, damaged insured property. During course of investigation it was revealed, Gaffar Mollah after firing and throwing bombs at a Football Match, upon being chased, took shelter in Vedic Resorts. It was submitted, Vedic Resorts had harboured a hard-core criminal. Hence, loss suffered was outcome of a malicious act which fell within exclusions. It is difficult to accept. In case of ambiguity, contract of insurance has to be construed in favour of insured [General Assurance Society Ltd. v. Chandumull Jain, AIR 1966 SC 1644].

Hon’ble Justice Bela M. Trivedi, National Insurance Company Ltd. v. Vedic Resorts and Hotel Pvt. Ltd., [Civil Appeal No. 4979 of 2019].