SC directed insurer to pay reinstatement value of goods instead of depreciated value

Last updated: 17 January 2023

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Quick Summary

The Supreme Court has ruled that insurance companies must pay the reinstatement value of damaged goods, rather than their depreciated value, if they are unable to repair or replace the items due to regulations. The court found that the National Consumer Disputes Redressal Commission had misinterpreted the insurance policy. Consequently, the Supreme Court restored the State Commission's order, awarding the appellant the reinstatement value of Rs. 29,17,500.

Court :
Supreme Court of India

Brief :
THE SUPREME COURT directed insurer to pay reinstatement value of the goods damaged and not the depreciated value, because as per the policy, in case the insurance company is unable to reinstate or repair because of some municipal or other regulations, it shall be liable to pay such sum as would be requisite to reinstate or repair such property.

Citation :
CIVIL APPEAL NO. 83 OF 2023 (@ SLP(C) NO. 9049 OF 2021)

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1999

(Excl. of GST ₹359)

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3499

(Excl. of GST ₹629)

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4999

(Excl. of GST ₹899)

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Judgement posted by

FCS Deepak Pratap Singh

Associate Vice President - Secretarial & Compliance (SBI General Insurance Co. Ltd.)

Dear Friends, MyselfFCSDeepak P. Singh ( B.Sc.. LLB, FCS. FIII, CIAFP, CRMP, ID) , A Fellow Member of ICSI, Law Graduate ,Fellow Member of Insurance Institute of India, Certified Independent Director ,Certified Insurance Anti Fraud Professional , Certified Risk Governance Professional ( ICSI-III) and cleared Limited I ... Read more

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