Ceylinco Insurance PLC Vs Ispat Corporation (Private) Limited – SC CHC APPEAL 21/2010-2009

In the case between Ispat Corporation (Private) Limited and Ceylinco Insurance PLC, National Development Bank of Sri Lanka, and Sampath Bank, the court addressed the issue of whether the insurer was liable under the policy for alleged malicious damage sustained by the Plaintiff’s factory following a management change. It was determined that the terms and conditions of the insurance policy—particularly concerning notice, documentation (Clause 12), fraudulent claims (Clause 14), and time limits for liability (Clause 21)—had been observed by the Plaintiff. The findings established that neither overestimation nor the suggestion of fraud justified the insurer’s denial of liability, and the claim was within the coverage for malicious damage. The decision reaffirms the principle that compliance w