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Insurance coverage cannot be available for a vague or indefinite period

In Jaiprakash Associates Ltd. V. ICICI Lombard General Insurance Co. Ltd., the insured were seeking damage for insured assets which was refused by the insurer on the ground that the period for which the machinery had been insured have expired.

On filling complain, the NCRDC noted that while the time period for the insured machinery was “about three months” and that in civil works, it may not always be possible to strictly adhere to such a stipulation, an insurance coverage cannot be available for a vague or indefinite period.  In fact, an insurance policy may itself be held to be void if the period of insurance is found to be vague, indefinite or uncertain.

Complainant was seeking coverage of TBMs for a period of three months from date of commencement of erection. Therefore, it was not necessary for insurer to specify period of coverage while issuing confirmation. Date of commencement of the construction was expressly conveyed by the complainant to the insurer. Damage to TBMs happened more than three months after its erection had commenced. Since, insurance cover in respect of TBMs was available only for a period of three months from date of commencement of their erection, Complainant cannot seek re-imbursement of its loss on account of damage to TBMs, from insurer.

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