In Brief
Orion Conmerx insured cargo for transit and claimed compensation after fire damage. The insurer denied the claim, alleging breach of policy terms. The National Commission partly allowed the claim at Rs. 61,39,539. The Supreme Court held that an insurer must substantiate any claim repudiation with clear evidence, not mere assertion. Once fire damage is proved and the insured is not found to be the instigator, the fire is presumed accidental. Contemporaneous business documents are reliable proof of loss quantum. The Court allowed the appeal, directing the insurer to pay the assessed amount with interest, reinforcing that insurance contracts are founded on mutual good faith and ambiguities must favour the insured."
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