Kushan Ediriweera v. Union Assurance Limited – SC APPEAL 65/2016-2020

In the case between Kushan Ediriweera and Chandra Ediriweera (Plaintiff/Respondent/Petitioner) versus Sadhasivam Sivagankan, Tissaweerasingham Sundhararajan, and Union Assurance Limited (Defendants), the primary legal issue concerned the validity and enforceability of an exclusion clause (item 5) in a motor insurance policy that sought to disclaim liability for accidents where the driver had consumed intoxicating liquor or drugs. It was held that such an exclusion clause did not satisfy the statutory requirements of the Motor Traffic Act, nor was it consistent with public policy objectives underpinning mandatory third-party insurance. The holding reaffirmed the principle that exclusion clauses in compulsory insurance contracts cannot override statutory protections granted to third parties.