AI Overview...
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Claim Denial and Depreciation - Insurance companies often deny claims or reduce payouts based on depreciation of machinery, especially when damages are due to wear and tear or natural deterioration. For example, in 01200046978, the insurer disclaimed liability for deterioration caused by natural wear, and in Sikka Papers Limited VS National Insurance Company Ltd. - Consumer, depreciation of 50% was applied to machinery losses, reducing the claim amount significantly.
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Liability and Market Value Assessment - Courts have held insurers liable when claims are settled without proper assessment, or when the claim is arbitrarily settled. In TABA GLOVES PRIVATE LTD. VS NEW INDIA ASSURANCE COMPANY LTD. - Consumer, the court directed the insurer to pay the balance after proper valuation, considering the current market value of machinery with depreciation. Similarly, in RAM COMPANY (PARTNERSHIP FIRM) & ANR. vs UNITED INDIA INSURANCE CO. LTD. - Consumer National, the insurer was ordered to reimburse loss after assessing depreciation and salvage.
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Surveyor's Role and Claim Verification - A detailed surveyor report is crucial in determining the actual loss and liability. As seen in Balaji Filaments Limited VS United India Insurance Co. Ltd. - Consumer, the surveyor's detailed investigation influenced the claim settlement, and in Balaji Filaments Limited vs United India Insurance Co. Ltd. - Consumer National, the court found the insurer's repudiation unjustified due to inadequate demonstration of loss or breach.
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Policy Conditions and Underinsurance - Policies often specify that if the insured sum is less than the actual value, claims are paid proportionally. In Sikka Papers Limited VS National Insurance Company Ltd. - Consumer, depreciation was applied, and the net loss was calculated accordingly. Underinsurance clauses also limit payouts, as noted in 01200046978.
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Rejection of Claims and Procedural Issues - Claims can be denied due to procedural lapses, such as failure to notify the insured about policy acceptance or rejection, as highlighted in Nakoda Dyeing & Weaving Mills Ltd VS Oriental Insurance Co. Ltd. - Consumer and Nakoda Dyeing & Weaving Mills Ltd VS Oriental Insurance Co. Ltd. - Consumer. Proper communication and documentation are essential for valid claim processing.
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Main Insights:
- Depreciation significantly impacts claim amounts; courts tend to favor proper assessment and fair valuation.
- Insurers are liable when claims are settled arbitrarily or without proper investigation.
- Surveyor reports are vital in establishing the extent of loss and liability.
- Underinsurance and policy conditions influence payout proportions.
- Procedural lapses by insurers can lead to unjust claim rejection.
References: - 01200046978, Sikka Papers Limited VS National Insurance Company Ltd. - Consumer, TABA GLOVES PRIVATE LTD. VS NEW INDIA ASSURANCE COMPANY LTD. - Consumer, RAM COMPANY (PARTNERSHIP FIRM) & ANR. vs UNITED INDIA INSURANCE CO. LTD. - Consumer National, Balaji Filaments Limited VS United India Insurance Co. Ltd. - Consumer, Balaji Filaments Limited vs United India Insurance Co. Ltd. - Consumer National, Nakoda Dyeing & Weaving Mills Ltd VS Oriental Insurance Co. Ltd. - Consumer, Mangalam Organics Limited VS New India Assurance Company Ltd. - Consumer, Nakoda Dyeing & Weaving Mills Ltd VS Oriental Insurance Co. Ltd. - Consumer
Search Results for "Balance Claim Denied Depreciation under Value Machine Insurer Liable"
• India - Consumer
V.K.JAIN
because he chooses not to replace damaged machine. ... fixtures, etc. got damaged due to fire — HELD — It cannot be said that in a case insurance company will not be liable to pay — Merely ... Consumer Protection Act, 1986 — Section 15, 17, 19 & 21 — Insurance Policies — Building as well as number of machines, fittings, ... for ordinary freight, erection and customs duties if any provided such expenses have been included in the sum insured, such actual value to be calculated by deducting proper #HL_STAR....
• India - Consumer
K.S.GUPTA, RAJYALAKSHMI RAO
The bank was not held liable for any relief. ... Final Decision: The court allowed the complaint and directed the Insurance Company to pay the complainant the balance claim ... amount without proper assessment, and settling the claim quickly and arbitrarily. ... Thus, the current market value of Malaysian machine with accessories will be Rs. 220 lakh 10% depreciation=198 lakh. The current market value of the Taiwanese machine wil....
2021 Supreme(Online)(NCDRC) 766 • India - National Consumer Disputes Redressal Commission
C. VISWANATH, PRESIDING MEMBER, RAM SURAT RAM MAURYA, MEMBER
The insurance provider denied the claim after the surveyor found discrepancies in the reported losses and determined many items were ... ... ... Result: Complaint allowed, insurer directed to reimburse the claim with interest. ... (Paras 3, 11, 17) ... ... (B) Insurer's duty - An insurer is not bound to accept ... The Insured is entitled to Rs.5637253/- towards loss of plant & machineries minus depreciation minus salvage and applying “under insurance clause”. As t....
2009 4 Supreme 733 • India - Supreme Court
D.K.JAIN, R.M.LODHA
shall not be liable under policy in respect of deterioration of or wearing away or wearing out of machine caused by or naturally ... shall not be liable under policy in respect of deterioration of or wearing away or wearing out of machine caused by or naturally ... – Again, Policy provided that if sum insured is less than the amount required to be insured, insurer will pay only in such proportion ... The insurer denied the #HL_START....
• India - Consumer
D.K.JAIN, R.M.LODHA
Rs. 8,073.59 ... Less reasonable depreciation 50% Rs. 4,036.79 ... Net Loss after depreciation Rs. 4,036.80 ... Thus, net loss after depreciation for (1) & (2)= A + B + Gears above for items under Invoice No.60/184990
• India - Consumer
SUBHASH CHANDRA, J. RAJENDRA
incident of fire was addressed by complainant with firefighting appliances available within premises, and after Fire Brigade arrived, balance ... and veracity of claim preferred, how incident happened, loss occasioned and determined loss and liability – Repudiation was after ... Surveyor in such cases holds significant importance – In the report, Surveyor had gone into details of policies, incident details, claim ... Balance Sheet, provisional P&L Account, performa invoice for Himson Draw Texturing Machine#HL_E....
2025 Supreme(Online)(NCDRC) 2899 • India - National Consumer Disputes Redressal Commission
AVM J. RAJENDRA, AVSM VSM (Retd.), MEMBER
The complainant sought compensation for damages arising from an insurance claim relating to a valid policy covering machinery and ... The court found that the insurance company's repudiation of the claim lacked sufficient basis, particularly as it failed to demonstrate ... included the timely filing of the complaint, allegation of non-consumer status, and ultimately the court's conclusion that the claim ... Balance Sheet, provisional P&L Account, performa invoice for Himson Draw Texturing Machine (Exhib....
• India - Consumer
V.K.JAIN
not told complainant that its proposal for issue of loss of profit policy not accepted — No reason for complainant not to lodge claim ... under loss profit policy — When it had lodged claim under standard fire and peril policy taken from opposite party — If policy not ... of Profit policy accepted by insurance policy requisite policy should immediately be sent to it in order to enable to submit its claim ... Ltd. stating therein that they were unable to repair of the machines due to financial constraints and requesting t....
• India - Consumer
R.K.AGRAWAL, S.M.KANTIKAR
at Rs. 10,09,34,774/- as full and final settlement against the total claim of Rs. 26,26,56,350/-—Under both the polices, despite ... the categorical finding of surveyor that complaint company was entitled for a claim to the time of Rs. 18,02,43,542/- pm account ... five accident—Submission of complainant that Insurance company has arbitrarily and without any application of mind settled the claim ... The Opposite Party Insurance Company denied the allegations of the Complainant. ... to any further amount and the Complaint....
• India - Consumer
V.K.JAIN
not told complainant that its proposal for issue of loss of profit policy not accepted — No reason for complainant not to lodge claim ... under loss profit policy — When it had lodged claim under standard fire and peril policy taken from opposite party — If policy not ... of Profit policy accepted by insurance policy requisite policy should immediately be sent to it in order to enable to submit its claim ... Ltd. stating therein that they were unable to repair of the machines due to financial constraints and requesting t....
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