Supreme Court Restores Insurance Claim for Snowfall Damage in Mussoorie Apex Court Overturns NCDRC Decision, Directs Payment to Insured Society for Building Collapse Due to Snowstorm
In a landmark decision, the Supreme Court of India has reinstated the judgment of the State Consumer Disputes Redressal Commission (SCDRC), Uttarakhand, directing Universal Sompo General Insurance Co. Ltd. to compensate Food Court The Company Garden Society for damages sustained due to a snowstorm. The ruling, delivered on November 18, 2025, by a bench comprising Justices J.K. Maheshwari and Vijay Bishnoi, overturns a prior judgment by the National Consumer Disputes Redressal Commission (NCDRC) which had dismissed the claim.
The dispute arose after the appellant, Food Court The Company Garden Society, experienced a building collapse in Mussoorie due to excessive snow accumulation following a heavy snowstorm on January 18, 2004. The society, insured under a 'Business Shield Policy', filed for compensation. However, the insurance claim was repudiated by Universal Sompo on the grounds that snowfall was not a named peril under the policy's fire tariff.
The SCDRC had initially directed the insurer to pay Rs. 11,84,192/- with interest, acknowledging that the policy terms, covering "storm", should be interpreted to include events like extreme precipitation. However, the NCDRC overturned this decision, arguing that the insured failed to take reasonable care to prevent the damage.
In its analysis, the Supreme Court emphasized the need for a broader interpretation of "storm" within insurance policy terms. The Court referenced legal definitions to argue that "storm" could include violent weather conditions accompanied by snow, not limited to traditional notions of rain or wind. Justice Maheshwari noted that due to continuous and heavy snowfall, practical measures to prevent snow accumulation were impossible, thus negating the reasonable care clause invoked by the insurance company.
The Supreme Court's decision reinstates the SCDRC's judgment, mandating the insurer to fulfill the claim with interest. Additionally, the Court instructed that any amounts already deposited with the NCDRC be disbursed to the insured promptly, with the remaining balance settled within four weeks.
This ruling reinforces the importance of contextual interpretation of insurance policies and sets a precedent for future claims involving atypical weather events.
Bottom Line:
Insurance claim for damage caused by snowfall - Policy terms must be interpreted contextually and not restrictively; "storm" includes events like extreme or unusually intense precipitation under certain circumstances.
Statutory provision(s):
- Insurance Law
- Business Shield Policy terms
- Interpretation of insurance policy terms
