In Brief
A bonded warehouse operator's fire insurance claim for Rs. 6.57 crore was wrongfully repudiated by New India Assurance, the Supreme Court held. The fire occurred at the insured premises on 14 March 2018. Multiple government and independent surveys indicated electrical short circuit as the likely cause; the insurer's forensic report was inconclusive. The Court held that a surveyor's report, though mandatory for large claims, is not conclusive and can be rebutted. Since the insured did not cause the fire, liability cannot be escaped on grounds of causation. Roof repairs for water leakage did not increase risk. The Court dismissed the insurer's appeal and ordered payment to the insured, with customs duty remitted directly to the Customs Department.
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