Supreme Court says insurance companies use ‘ambiguous’ and ‘sloppy’ policy terms to evade liability

The Supreme Court of India criticized insurance companies for using ambiguous and sloppy policy language to avoid paying legitimate claims. The court noted that such practices unfairly burden policyholders and complicate the resolution of motor accident compensation cases.
The Supreme Court on Monday (July 20, 2026) observed that the practice of insurers drafting “ambiguous” and “sloppy” insurance policies to escape liabilities they ought to bear had caused ordinary policyholders to suffer. The court said such “uncertainty” was also creating hurdles in the timely disposal of motor accident compensation claims.
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