SIKKA PAPERS LTD. vs NATIONAL INSURANCE CO. LTD. .

The Supreme Court upheld the National Commission's order directing the insurer to pay Rs. 10,47,491 with interest at 12% from March 1, 2000, for the repair of a diesel generating set insured under policy No. 451902/46/99/415. The Court found that the insurer failed to fulfill its obligations under the insurance policy, as it only reimbursed Rs. 8,07,110 despite the complainant incurring higher repair costs. The judgment emphasized the insurer's duty to act in good faith and the principle of indemnity in insurance contracts.