Insurer can't transfer liability to another party

The National Commission said even if the landlord is the tortfeasor, the insurer should settle the claim and then take legal action to recover the amount from the latter

Jehangir B Gai

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Aroma De France was engaged in the business of perfumes and related products. The firm had taken a godown on rent at Dabhasa Village where packaging materials and bottles were stored. These were insured for Rs 1.5 crore under a Standard Fire and Special Perils Policy issued by United India Insurance.
On February 2, 2014, the landlord of the godown arranged a reception for his son’s marriage on an adjacent vacant plot. He took the electric connection for lighting from an adjoining factory. After the party got over around 4 a.m., the workers noticed a fire emanating from the godown rented to Aroma De France. The landlord, the fire brigade and the police were immediately informed.
Aroma De France lodged a claim with the insurer for the packaging material gutted in the fire. The insurer appointed a surveyor who promptly inspected the site. He also examined all the relevant records. On February 15, 2014, he submitted an “Im
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

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First Published: May 14 2023 | 9:15 PM IST

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