In Brief
Levi Strauss obtained a domestic fire insurance policy from United India Insurance covering its warehouse stocks. Its parent company simultaneously held a global marine insurance policy with Allianz covering the same goods worldwide. When a warehouse fire destroyed stock worth approximately ₹11.34 crores in July 2008, United India repudiated the claim, citing a contractual exclusion where loss is covered by marine policies. Levi complained to the consumer commission, which allowed its claim. The Supreme Court reversed this decision, holding: (1) the Allianz policy was demonstrably a marine policy; (2) the exclusion clause validly barred United India's liability; (3) Levi was not legally obligated to obtain domestic insurance under Indian law; (4) the principle of indemnity prevented Levi from recovering more than actual loss, which it had already exceeded by receiving ₹19.52 crores from Allianz against a claimed loss of ₹12.2 crores.
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