Supreme Court of India· 21 September 2026

Can a fire insurance claim be denied where there is reasonable cause to suspect that the insured was the instigator of the fire?

M/s. New India Assurance Company Ltd v. M/s. Hemkund Duplex and Board Pvt. Ltd

2026 INSC 1023 · Civil Appeal No. 7221 of 2025
Coram: Justice Sanjay Kumar · Justice Sanjeev Sachdeva

🔖 Save this judgment 📬 Get today's judgments

View the original judgment PDFFree to read. To download it — or the LexStreak typeset copy with the headnote and Points of Law — create an account; downloads are part of the Pro plan.

Answer

A fire insurance claim can be denied where there is reasonable cause to suspect that the insured was the instigator of the fire.

A fire insurance claim can be denied where there is reasonable cause to suspect that the insured was the instigator of the fire. Ordinarily, once loss by fire is established with no allegation or finding of fraud or that the insured was the instigator, the precise cause of the fire is immaterial and the loss falls within the policy; but where reasonable cause to suspect the insured exists, the claim may on facts be liable to be denied on that ground (¶26).

Headnote

Fire insurance — Policy conditions — False declaration — Forfeiture — Repudiation of claim — Cause of fire — Fire insurance — Policy conditions — False declaration — Forfeiture — Held: An insurer is entitled to reject an insurance claim without further ado where the insured makes false averments to bolster the claim. Such a false declaration in support of a claim forfeits all benefits under the policy. (¶31, 32) Fire insurance — Cause of fire — Instigator — Held further: A fire insurance claim can be denied where there is reasonable cause to suspect that the insured was the instigator of the fire. Ordinarily the precise cause of a fire is immaterial once loss is established with no finding of fraud, but that immateriality does not survive such reasonable cause to suspect. (¶26) Fire insurance — Repudiation of claim — Held further: The repudiation of the claim on the ground that the policy conditions stood violated was sustainable on these facts, and the insurer's appeal was allowed while the insured's appeal on quantum was dismissed. (¶34, 35)

Headnote

You've used your free headnotes this month

The answer above and the Court's own paragraphs stay free. LexStreak's full headnote on this judgment needs an account — a free one opens it again.

Create my free account

In the Court's own words

Paragraph 26In New India Assurance Company Limited and others vs. Mudit Roadways [^7], this Court considered an insurance claim arising out of a fire accident, wherein multiple survey reports suggested different causes for the fire, presenting a perplexing conundrum. The NCDRC had placed reliance on the judgment of this Court in Canara Bank vs. United India Insurance Company Limited and others[^8], wherein it was observed that as long as the insured is not the person who caused the fire, the insurance company cannot escape its liability in terms of the policy. It was, therefore, declared that where the precise cause of the fire, i.e., whether it was attributable to a short circuit or any other factor, could not be ascertained it was immaterial as long as the claimant was not the instigator of the fire. Thereafter, in Orion Conmerx Private Limited vs. National Insurance Company Limited[^9], this Court observed that, once it is established that loss was caused due to a fire but there was no allegation or finding of fraud or that the insured was the instigator of the fire, the cause of the fire would be immaterial and it would have to be assumed and presumed that the fire was accidental and the loss would fall within the ambit and scope of the insurance policy. In effect, if there is reasonable cause to suspect that the insured may have been the instigator of the fire, the claim put forth by such insured may, on facts, be liable to be denied on that ground.

One judgment a day. That's the whole habit.

Read the full text of M/s. New India Assurance Company Ltd v. M/s. Hemkund Duplex and Board Pvt. Ltd — and get the Supreme Court's output as a five-minute daily read, with plain-language headnotes and the questions each judgment settles.

Create my free account

Free forever plan · 30 seconds · data stays in India

Open the full judgment →

Also decided in this judgment

Is an insurer entitled to reject an insurance claim without further ado where the insured makes false averments to bolster the claim?

Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Supreme Court of India. Corrections