In Brief
A truck owner claimed Rs 13.5 lakh under a fire insurance policy after his vehicle caught fire. The insurer rejected the claim alleging the fire was deliberate, but the State Consumer Commission awarded full compensation. The National Commission reduced this to 60% of the insured value, citing delayed notice to the insurance company and relying on breach-of-warranty guidelines. The Supreme Court allowed the appeal, holding that the notice (given on 3 June) was not unduly delayed and that policy conditions regarding police notice apply only to theft or criminal acts, not accidental loss. Since no actual breach of policy conditions occurred, claim reduction was unjustified. Full compensation was restored."
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