The Supreme Court has overturned a consumer award arising from a factory fire, ruling that the National Consumer Disputes Redressal Commission could not discard detailed surveyor reports without identifying concrete defects.
In New India Assurance v Hemkund Duplex, 2026 INSC 1023, investigators recorded a delayed call to the fire service, limited efforts to control the blaze and irregularities in the claimed stock. The insurer relied on those findings to repudiate the claim.
The commission nevertheless granted compensation substantially above the surveyors’ assessment. The Supreme Court found no evidentiary basis for brushing aside the reports or independently enlarging the loss. Surveyor conclusions are not conclusive, but a consumer forum must explain why their methodology or findings are unreliable before departing from them. The insurer’s appeal was allowed, the commission’s order was set aside and the insured company’s cross-appeal was dismissed.
