Sr.Divisional Manager,O.I.Co.Ltd.& ... vs M/S Target Plywood Industries Ltd

The Supreme Court addressed a fire insurance claim under the Insurance Act, ruling that the insurer must honor claims for losses covered by the policy, provided the insured has paid the full premium and reported the incident promptly. The Court emphasized that the insurer's reliance on discrepancies in stock records must be substantiated and cannot be a blanket reason to deny claims. The Court held that the insurer was liable to pay the assessed claim amount of Rs. 81.33 lakhs, as the fire was accidental and the insured had complied with policy requirements.