Supreme Court rules insurer not liable for risk beyond sum assured unless premium paid in advance

The Supreme Court is reviewing the National Consumer Disputes Redressal Commission's order that held the insurer liable.

Who it concerns: Appellants: The New India Assurance Company Limited & Ors.; Respondents: M/s Louis Dreyfus Commodities India Pvt. Ltd.; Bench: Justice Sanjay Karol.

What the court decided

• The Court heard arguments from counsel for both parties.
• The Court noted the specific statutory provision Section 64VB of the Insurance Act, 1938, which states no insurer shall assume risk unless premium is received in advance.
• The document provided is truncated and does not contain the final judgment, operative directions, or relief granted by the Court.

Also in the document

• The judgment is marked as 'REPORTABLE' and cited as 2026 INSC 876.
• The dispute arises from two separate incidents involving the same parties, though the Court focuses on the facts of Complaint Case No. 259 of 2012.
• The NCDRC had previously ordered the appellants to pay the assessed damages based on a clarification that coverage would continue irrespective of turnover exceeding the insured amount.