THE NEW INDIA ASSURANCE CO. LTD. vs SRI BUCHIYYAMMA RICE MILL

The Supreme Court upheld the decision of the National Consumer Disputes Redressal Commission, which directed the insurer to pay Rs 29,23,503 with interest for the damage caused to the rice mill's boiler unit due to a lorry collision. The Court emphasized that the insurer's repudiation of the claim was unjustified as the preliminary survey did not conclusively establish that the damage was not caused by the accident. The Court reiterated the principles of consumer protection under the Consumer Protection Act, 1986, particularly Sections 2(1)(d) and 14, affirming the rights of consumers to claim compensation for losses incurred due to negligence of service providers.