In Brief
M/s. Isnar Aqua Farms, a prawn farming partnership, purchased a five-month insurance policy covering 22.67 lakh prawns on 68 acres for ₹1.2 crore. When White Spot Disease devastated the crop in 1995, the insurer rejected the claim, alleging poor record-keeping. The National Consumer Disputes Redressal Commission found the rejection unjustifiable and awarded partial compensation. On appeal, the Supreme Court held that the insurer violated the principle of utmost good faith by ignoring the Fisheries Department death certificate it had itself required in the policy. The Court computed the admissible loss using the insurance policy's three prescribed methodologies and awarded ₹45.18 lakh plus 10% interest from the complaint date until payment.
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