In Brief
An industrial garment manufacturer obtained a fire insurance policy for Rs. 85 lakh. Following a factory fire in July 2000, the first appointed surveyor assessed the loss at Rs. 54.93 lakh. Dissatisfied, the insurance company appointed a second surveyor (reducing the claim to Rs. 24.76 lakh) and a third surveyor (recommending total repudiation), relying on concerns about export documents and an accused third party. The Supreme Court upheld the National Consumer Disputes Redressal Commission's award of Rs. 54.93 lakh, holding that an insurance company cannot appoint successive surveyors without cogent reasons merely to obtain a favorable outcome. The systematic reduction and eventual repudiation of the claim demonstrated bad faith, and the grounds cited (document irregularities, third-party involvement) were insufficient to override the first detailed assessment.
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