Cause Of Fire Is Immaterial If Insured Didn't Instigate It : Supreme Court Explains Principles On Fire Insurance

Reiterating that the exact cause of a fire is immaterial so long as the insured is not its instigator, the Supreme Court on Thursday (October 30) dismissed the appeal filed by the National Insurance Company and upheld the insured's claim for loss arising from a fire that originated from multiple sources.

“Once it is established that the loss is due to fire and there is no allegation/finding of fraud or that the Insured is the instigator of the fire, the cause of fire is immaterial and it will have to be assumed and presumed that the fire is accidental and falls within the ambit and scope of fire policy.” , the court observed.

A bench of Justices Dipankar Datta and Manmohan heard the dispute, which originated from a fire at the premises of Orion Conmerx in September 2010. While the Nat