In Brief
An insurance company refused to pay claims filed for flood damage to a factory's goods and machinery in 1992, citing policy conditions and limitation periods. The insured filed a consumer complaint. The insurance company appointed two surveyors who assessed the loss at about Rs. 24 lakhs, but the company still did not pay and repudiated the claim only five years later. The National Commission awarded the insured Rs. 21,05,803.89 with interest. The Supreme Court upheld this, holding that limitation rules cannot be strictly applied to prejudice a consumer when the insurance company itself caused delay through prolonged survey processes. The Court affirmed the surveyor reports as valid and dismissed the insurance company's appeals."
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