Golden Trust Financial Services & Ors vs Union Of India & Ors on 18 March, 2019
M/s. Twenty First Century Media Pvt. Ltd. (supra) has
considered a case where, although, the insured was protected
against floods and rains by virtue of a contract for insurance, when
such an incident happened, the insurance company unilaterally
made an endorsement dated October 18, 2010 deleting the
expressions 'floods, rains etc.' from the policy. This has been found
to be arbitrary and violative of the fundamental right of the insured
under Article 14 of the Constitution. There only one contract of
insurance was involved were a coverage of floods, rains, etc. were
sought to be excluded. The policy would otherwise continue.
Certain coverage under the policy where sought to be excluded
without the policy itself being terminated. In this case, the entire
policy is terminated on the ground of change of policy. This difference
to my understanding is substantial.