The Delhi High Court has ruled in favor of the petitioner, Numero Uno Clothing Ltd., in a dispute with United India Insurance Co. Ltd. over the existence of an arbitration agreement in two insurance policies. The policies, issued on January 31, 2024, contained arbitration clauses, despite the existence of an IRDAI Circular dated October 27, 2023, which allegedly superseded arbitration clauses in fire insurance policies. The respondent, United India Insurance, had argued that the circular rendered the arbitration clauses in the policies ineffective, but the court rejected this argument.<\/p>\n
The court held that by issuing policies after the circular with arbitration clauses intact, the respondent had effectively waived its right to rely on the circular to deny the existence of an arbitration agreement. The court noted that party autonomy is a core principle of arbitration law, and if the respondent intended to rely on the circular, it should not have included arbitration clauses in the policies issued after the circular.<\/p>\n
The court also observed that the circular would apply to policies existing as on the date of the circular or on the date of being gazetted, but where a policy had been issued after the circular and still contained an arbitration clause, there was no justification for the insurer to argue that the clause stands deleted unless it plainly intended to retain arbitration.<\/p>\n
The court allowed the petition and directed the respondent to appoint its nominee arbitrator within two weeks, and the two nominee arbitrators to appoint the presiding arbitrator within a further two weeks. The court’s decision emphasizes the importance of party autonomy in arbitration and the need for insurers to clearly indicate their intention to rely on regulatory circulars when issuing policies.<\/p>\n
The case highlights the complexities of arbitration law and the need for careful consideration of regulatory circulars and their impact on insurance policies. The court’s decision provides clarity on the issue and sets a precedent for similar cases in the future. The petitioner was represented by a team of advocates, including Saurav Agarwal and Ritika Jhurani, while the respondent was represented by Senior Advocate Vishnu Mehra. The case was decided on November 20, 2025, and is reported as Numero Uno Clothing Ltd. v. United India Insurance Co. Ltd., 2025 SCC OnLine Del 8704.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Delhi High Court has ruled in favor of the petitioner, Numero Uno Clothing Ltd., in a dispute with United India Insurance Co. Ltd. over the existence of an arbitration agreement in two insurance policies. The policies, issued on January 31, 2024, contained arbitration clauses, despite the existence of an IRDAI Circular dated October 27, […]<\/p>\n","protected":false},"author":1,"featured_media":221269,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"fifu_image_url":"","fifu_image_alt":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[22,39],"tags":[],"class_list":["post-222455","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insurance","category-united-india-insurance"],"jetpack_featured_media_url":"https:\/\/smallnews.in\/insurance\/wp-content\/uploads\/sites\/5\/2025\/04\/united-india-insuracne.jpg","jetpack_shortlink":"https:\/\/wp.me\/p9ibIB-VRZ","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":222449,"url":"https:\/\/smallnews.in\/insurance\/2025\/12\/18\/delhi-high-court-has-ruled-that-a-government-circular-cannot-limit-insurance-coverage-and-has-ordered-an-insurer-to-pay-the-balance-of-a-covid-19-claim\/","url_meta":{"origin":222455,"position":0},"title":"Delhi High Court has ruled that a government circular cannot limit insurance coverage, and has ordered an insurer to pay the balance of a COVID-19 claim.","author":"Team Small News","date":"December 18, 2025","format":false,"excerpt":"The Delhi High Court has ruled in favor of a policyholder, Reena Goel, who had filed a petition against United India Insurance Company Limited for not reimbursing her full Covid-19 hospitalization claim. The court observed that a government circular issued during the pandemic, which regulated hospital charges, cannot be used\u2026","rel":"","context":"In "Insurance"","block_context":{"text":"Insurance","link":"https:\/\/smallnews.in\/insurance\/category\/insurance\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":222459,"url":"https:\/\/smallnews.in\/insurance\/2025\/12\/19\/medical-insurance-purchase-medical-insurance-online-in-india\/","url_meta":{"origin":222455,"position":1},"title":"Medical Insurance – Purchase Medical Insurance Online in India","author":"Team Small News","date":"December 19, 2025","format":false,"excerpt":"Upstox Securities Pvt. Ltd. is a wholly-owned subsidiary of RKSV Securities India Private Limited. The company is registered with the Securities and Exchange Board of India (SEBI) and has various registrations, including INZ000315837, NSE TM Code: 13942, BSE TM Code: 6155, MCX TM Code: 46510, and CDSL Reg No.: IN-DP-761-2024.\u2026","rel":"","context":"In "Insurance"","block_context":{"text":"Insurance","link":"https:\/\/smallnews.in\/insurance\/category\/insurance\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":222563,"url":"https:\/\/smallnews.in\/insurance\/2026\/01\/01\/the-kerala-high-court-has-stated-that-the-mere-presence-of-alcohol-in-a-persons-system-does-not-necessarily-imply-that-they-were-intoxicated-and-therefore-should-not-be-a-grounds-for-denying-health\/","url_meta":{"origin":222455,"position":2},"title":"The Kerala High Court has stated that the mere presence of alcohol in a person’s system does not necessarily imply that they were intoxicated, and therefore, should not be a grounds for denying health insurance claims. When selecting a suitable health policy, consider the following factors: \n\nCoverage and Benefits: Assess the extent of coverage, including the types of medical expenses covered, and any additional benefits such as critical illness coverage or maternity benefits.\nPremium Costs: Evaluate the cost of premiums in relation to the coverage provided, considering both the amount and the frequency of payments.\nDeductibles and Copays: Understand the out-of-pocket expenses you’ll need to pay before insurance coverage kicks in, including deductibles, copays, and coinsurance.\nNetwork Providers: Check if your preferred healthcare providers are part of the insurer’s network to avoid out-of-network costs.\nPre-existing Conditions: If you have any pre-existing medical conditions, look for policies that offer coverage with minimal waiting periods.\nClaim Process: Research the ease and efficiency of the claim filing and settlement process.\nPolicy Flexibility: Consider policies that offer flexibility in terms of coverage options, premium payment modes, and the ability to make changes as your health needs evolve.\nInsurer Reputation: Evaluate the insurance company’s reputation for customer service, claim settlement ratio, and overall reliability.\nRiders and Add-ons: Assess any additional riders or add-ons that can enhance your policy, such as accidental death benefit or waiver of premium.\nRenewal and Lifelong Coverage: Check the policy’s renewal terms and whether it offers lifelong coverage without any upper age limit for renewal.","author":"Team Small News","date":"January 1, 2026","format":false,"excerpt":"The Kerala High Court has made a significant ruling that insurance companies cannot reject accident-related claims solely because the driver had alcohol in their system at the time of the incident. 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The couple has been paying premiums for 24 years, including terminal illness cover, which promises an \u00a380,000 payout if the policyholder is diagnosed with a terminal illness\u2026","rel":"","context":"In "Aviva Life Insurance"","block_context":{"text":"Aviva Life Insurance","link":"https:\/\/smallnews.in\/insurance\/category\/aviva-life-insurance\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":222734,"url":"https:\/\/smallnews.in\/insurance\/2026\/01\/25\/bombay-high-courts-stay-brings-gst-relief-to-over-a-dozen-insurers\/","url_meta":{"origin":222455,"position":5},"title":"Bombay High Court’s stay brings GST relief to over a dozen insurers","author":"Team Small News","date":"January 25, 2026","format":false,"excerpt":"The Bombay High Court has granted a temporary stay on a substantial demand and associated penalties by the Goods and Services Tax (GST) authorities, providing relief to over a dozen insurance companies. 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