In Brief
A consumer's home was burgled and he claimed Rs. 4,03,150 from his householder insurance policy with Oriental Insurance. The insurance company paid only Rs. 29,920, citing under-insurance. The Supreme Court held that the principle of proportionate adjustment (averaging) applies only when some items under a category are lost; if all items are stolen, the insured gets the full insured amount. The company was wrong to demand item-wise valuations it never required when renewing the policy. The Court awarded the claimant Rs. 1,00,500 for jewellery, Rs. 66,000 for electrical appliances, Rs. 28,000 for watches, and Rs. 7,000 for repairs, plus compensation and interest, less amounts already paid.
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