Decided on 15.7.2025
National Consumer Commission has held United India Insurance Co. Ltd. liable for deficiency in service and directed them to pay Rs Rs. 2.35 Crores for Cancelled Cricket Match to the Andhra Cricket Association. Repudiation of an insurance claim was by the insurance company held wrong under the circumstances when cancellation of a ‘One Day International’ cricket match scheduled for 14.10.2014 was cancelled due to cyclone Hudhud.
Brief Facts
The Andhra Cricket Association had taken an insurance policy from United India Insurance Co. Ltd. to cover any losses, in case the ODI cricket match between India and West Indies scheduled on 14.10.2014 in Vishakhapatnam, got cancelled.
The policy insured the match day i.e. 14th October 2014. But, on the 12.10.2014, a cyclone hit Vishakhapatnam. Due to heavy damage caused by this cyclone, the BCCI on 13th October, cancelled the match scheduled for 14.10.2014. Thereafter the Cricket Association claimed the insurance amount from the Company, since the cancellation was due to storms and rain, which were covered under the policy.
Arguments of United India Insurance Co. Ltd.
- The Company argued that the insurance policy was valid only for 24 hours, starting from the midnight of 14th October to the midnight of 15th October. They argued that the cyclone occurred on 12th October, and the match was cancelled on 13th October, when the policy period had not even started
According to them, the cyclone must occur during the policy period and not before it, for the claim to be valid.
- It was further argued that the Match had to be cancelled due to an administrative decision an administrative decision has to be taken but the reason for the administrative decision was the cyclone and the storm as well as the rain occurred 10.2014 and not during the policy period of for 24 hrs .
Court’s t observations
- The occurrence and the observations made by the Surveyor to urge that the Match was cancelled only on account of these natural adverse atmospheric conditions with rain, storm and a cyclone having hit the area. Cyclone had hit the entire area, crossing Vishakhapatnam on 12.10.2014, causing heavy damage to the entire area, including the stadium as well as the pitch on which the Match was to be played. The Match was therefore cancelled on account of this natural calamity
- Describing the occurrence the Surveyor through his observations is a clear that the reason given to repudiate the claim results in clear testimony to the loss suffered due to the cyclone. It is therefore urged that the peril was clearly covered and it is not a compulsion, to avail of a claim, only when such an occurrence takes place on the day of the Match
- While applying the rule of ‘Contra Proferentem’, the Commission held that the repudiation of the insurance claim was unjustified and United India Insurance Co. Ltd. was guilty of deficiency in services.
Order
As a result, the Commission directed the insurance company to pay Rs. 2,35,81,470/- to the Andhra Cricket Association along with an interest of 6% from the date of filing the complaint. (Authored by Dr Prem Lata)
