In Brief
Oriental Insurance Company challenged the National Consumer Disputes Redressal Commission's order requiring it to pay Rs. 3.47 crore for loss of mentha oil under a fidelity guarantee insurance policy. The respondent, a collateral management company storing pledged commodities, claimed employee infidelity when oil was substituted with water. The Court upheld the claim, holding that fidelity guarantee insurance covers losses from employee breach of trust and that the insured promptly reported the claim after completing necessary investigation. The insurance company could not repudiate based on technical grounds like intact seals or the time taken to confirm the loss through sampling. Appeal dismissed."
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