Supreme Court Calls for Re-Evaluation of Insurance Compensation by NCDRC

The Supreme Court has instructed the NCDRC to reassess the compensation amount payable to a company under an insurance policy for its 2005 losses. The judgment emphasized that the NCDRC had not independently examined the compensation's quantum, relying instead on a unilateral assessment by the company's surveyor.

The Supreme Court on Monday mandated the National Consumer Disputes Redressal Commission (NCDRC) to re-assess the insurance compensation for a company's 2005 losses. The apex court's directive arose from a dispute over the payout's quantum under a comprehensive insurance policy.

In its hearing, the Supreme Court highlighted that the NCDRC failed to conduct an independent evaluation of the compensation amount, instead basing it on a unilateral surveyor's report submitted by the claimant company. The insurance firm had contested this assessment, pointing to a significant discrepancy in loss valuation.

Citing an unfounded reliance on the company's surveyor, the Supreme Court remitted the matter to the NCDRC with instructions to prioritize and expedite a decisive ruling on the compensation quantum. This marks a significant step in ensuring judicial scrutiny over consumer protection claims.

(With inputs from agencies.)