UNION OF INDIA vs M/S. SOHANLAL SAMPATLAL

The Supreme Court held that under Section 6 of the Indian Post Office Act, 1890, the burden of proof lies with the insurer to demonstrate that the declared value of a parcel is not reflective of its market value at the time of posting. The Court ruled that minor discrepancies in declared value do not disqualify the insured from receiving compensation, emphasizing that the insured should not be entirely denied compensation due to insignificant misstatements. The High Court's decision to hold the insurer liable was upheld, as they failed to provide evidence of the actual market value of the gold at the time of posting.