In Brief
The appellant purchased tractor insurance and reported the theft to police on the same day it occurred (28 October 2010). However, he notified the insurance company 52 days later. The insurer rejected the claim citing delayed notification, violating the policy condition requiring 'immediate notice'. The District Consumer Forum allowed the claim, but the National Consumer Commission reversed it. The Supreme Court held that immediate notification must apply to police (who conduct recovery), not necessarily to the insurer. Since the theft was genuine, verified by the company's own investigators, and the FIR was lodged immediately, delay in informing the insurer alone cannot justify repudiation. The Court allowed the appeal and awarded the full insured value of Rs 4,70,000 plus interest.
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