ORIENTAL INSURANCE CO LTD Vs. BASHIR AHMED MIR

JUDGEMENT

(1.) THROUGH the medium of this appeal order dated 30.11.2004 passed by the learned Divisional Forum, Srinagar (hereinafter to be referred to as the Forum) has been challenged mainly on the ground that the learned Forum has committed legal error in allowing the claim on the basis that the exclusion clause which existed in the contract of insurance was never communicated to the respondent insured. There is no dispute regarding quantum but the rate of interest has been stated to be on the higher side and it is also pleaded that the cost of the litigation in the sum of Rs. 5,000 was not to be awarded on the facts and in the circumstances of the case as there was no deficiency in service.

(2.) HEARD the arguments.

(3.) MR . Kawoosa in support of first ground of the appeal has contended that the exclusion clause was part and parcel of the contract of insurance and it was a condition in the terms and conditions of the policy. In order to buttress his contention, he has cited the case of General Assurance Society Ltd. v. Chandmull Jain and Another, 1966 AIR(SC) 1644 According to him in this case it has been held that "even if the insurance policy has not been delivered to the insured at the time of taking the insurance, even then the insured is bound by the standard terms and conditions of the policy". It is a commercial transaction and the parties are bound by the terms and conditions of the policy.