M/S Modern Insulators Ltd vs The Oriental Insurance Co. Ltd

The Supreme Court held that in insurance contracts, both parties must observe utmost good faith, as established in the principle of 'uberrima fides'. The Court found that the National Consumer Disputes Redressal Commission erred in its judgment by not recognizing the insurance company's obligation to communicate all terms, including exclusion clauses. The Court reinstated the State Commission's order directing the insurance company to indemnify the appellant for the assessed loss of Rs. 4,66,873/- with interest, emphasizing the necessity of clear communication of policy terms.