Report No. 97

3.5. Bombay case.-

We may also refer to a Bombay case which relates to the incorporation of policy conditions (machine-risk insurance policy). It was a condition of forfeiture in case of a fraudulent claim or failure to bring an action within the stipulated time on repudiation of the claim. There was no reference made to this condition in the receipt of first premium, nor was it brought to the notice of the insured before accepting the first premium. Nevertheless, it was held that the condition formed a normal term of the class of policies in question and was binding on the insured. Further, it was held that the condition did not violate section 28 of the Contract Act.1

1. New India Ass. Co. v. R.M. Khandelwal, AIR 1974 Born 228.