The Inference of Waiver in Different Insurance Policies

The stipulation clause 'No claim under this policy shall be payable unless the terms of this policy condition have been complied with' is sine qua non (an essential condition; a vital thing), and is often missed while processing a fire claim.

- By Dr Abhijit K. Chattoraj, Chartered Insurer

In my last article, 'Unravelling the Implications of Estopel and Waiver in Claims Settlement,' published in the August 2025 issue of 'The Insurance Times' under the caption 'Insurance Demystified, 'I mentioned that I would discuss the case of Galada Power and Telecommunication Ltd. vs. United India Insurance Co.Ltd. (C.A.No.8884-8900 of 2010) in the context of Waiver and Estoppel.

Background of the above case

Galada Power and Telecommunication took a marine (transit) policy from United Insurance Co. Ltd, vide Policy No.050202/21/26/16/2101/97. There was a shortage/loss of 'All Aluminium Alloy Conductor' (for short, 'AAAC') wire, which the Galada Power supplied to the Power Grid Corporation of India Limited (PGCIL). Galdada Power filed a claim of Rs 35 lakh against the insurance company on April 3, 1998. Based on the intimation, the Insurer appointed a surveyor who submitted his report on 1st September 1998, assessing the loss at approximately Rs. 2 lakhs in each case, totalling Rs. 43 lakhs.

United India Co.Ltd repudiated the claim on 20th September,1999, stating that 'On perusal of the records pertaining to the above claim, and subsequent investigation into the matter, we find that the above claim lodged by you does not fall under the purview of "TRANSIT LOSS". As such, the claim is not tenable under the terms of the policy. In view of this, we are treating your above claim as "NO CLAIM'.