W Piyaratna vs National Insurance Corporation Ltd – CA 400/99F-2013

In the dispute between W Piyaratna (Plaintiff-Appellant) and National Insurance Corporation Ltd (Defendant-Respondent), the central issue concerned whether the District Court retained jurisdiction to hear the plaintiff’s claim given the presence of an arbitration clause (Clause 19) in the insurance policy. The case arose after the plaintiff claimed compensation for fire damage, which the insurer denied entirely, prompting a preliminary objection on jurisdictional grounds. It was held that a total denial of liability by the insurer did not trigger the arbitration requirement under Clause 19, as such denial did not constitute a “difference as to the amount of any loss or damage.” Consequently, the District Court was found to have jurisdiction. The order of dismissal was set aside, the action