In Brief
An industrial garment manufacturer with Rs. 85 lakh fire insurance obtained claims of Rs. 54,93,865 from its first surveyor but saw the insurance company appoint successive surveyors—reducing the claim to Rs. 24,76,585, then rejecting it entirely. The Supreme Court held that insurers cannot appoint multiple surveyors without cogent reasons to obtain favourable reports. The first surveyor's assessment was reasonable, based on verified bank documents and proper investigation. The Insurance Company's grounds for rejection—unverified letter-of-credit concerns and criminal allegations against an unrelated third party—were insufficient and arbitrary. The Court upheld the National Consumer Disputes Redressal Commission's award of Rs. 54,93,865 plus 6% interest from filing, affirming fair insurance claim settlement principles.
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