Case Law Analysis
Indemnity Principle | Compensation in Motor Insurance Must Reflect Actual Loss, Not IDV, Unless Total Loss Proven : West Bengal SCDRC
The West Bengal State Consumer Commission ruled that insurers cannot rely on Insured Declared Value (IDV) as the default payout - compensation must be tied to verified actual loss, with the burden on the insurer to prove colour alteration or fraud. This clarifies that surveyor reports alone cannot override documented damage, empowering policyholders against arbitrary claim repudiation.