In Brief
Sayona Colors claimed over ₹28 crores from United India Insurance for fire damage to its godown on 25 March 2011, alleging accidental loss. The insurer contested, asserting deliberate arson. The NCDRC partially allowed the claim, awarding ₹3.33 crores. The Supreme Court set aside this award, holding the entire claim fraudulent. Forensic evidence showed kerosene accelerants at the fire's origin, fabricated supplier invoices, and suspicious timing—coverage was enhanced just before the fire. The Court reaffirmed that fraud vitiates all acts; once established, no claim relief is permissible, regardless of physical damage extent. The insurer was absolved of liability, and a Special Investigation Team was directed to investigate further.
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