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United India Insurance Liable For Wrongful Under-Insurance Deduction In Insurance Claim Assessment: J&K Consumer Commission
['Livelaw News Network']
Supreme Court - High Court - Legal Breaking News | Live Law India
Maheep Gupta, held United India Insurance Company Ltd. liable for short payment of an insurance claim after finding that the surveyor had wrongly applied under-insurance deductions to the Furniture, Fixtures & Fittings (FFF) and the Testing Machine.
Facts:The complainant, M/s Lala Enterprises and Hemkunt Sale & Services, alleged that it had suffered an insurance loss of approximately ₹16.50 lakh, but United India Insurance Company paid only ₹7,28,017 based on the surveyor's assessment.
The complainant argued that the incident was a total loss, and therefore under-insurance should not have been applied.
Observation and decision:The Commission agreed that under-insurance would not apply in a genuine case of total loss, but examined whether the individual items actually constituted total or partial loss.
481 OF 2015Case Title: M/S LALA ENTERPRISES V/S UNITED INDIA INSURANCE COMPANY LTD.