Action is a law suit involving the right of one party to recover from another person in a court of law. It includes case, cause, suit, or controversy disputed or contested before a court of justice. Action generally means a litigation in a Civil Court for the recovery of individual right or redress of individual wrong, inclusive, in its proper legal sense, of suits by the Crown. 

( Brandlaugh Vs. Clarke, (1883) 52 LJQB 508; 8 App. Cas. 354 p. 361 )

The word action as used in insurance matter must be given a most liberal and extended meaning- action will not only mean a suit or other legal proceeding in Court for recovery of damages, but it will also mean and include any legal action pending before the authority who is under legal obligation to compensate the damage under the insurance policy.

( Shadharan Bima Corporation Vs. Sanjib Kumar Das, 1993 46 DLR, 566 )