The Supreme Court orders insurers to pay replacement costs rather than depreciated values for goods damaged by fire
The National Consumer Disputes Redressal Commission later reduced the order from INR 29,17,500 to INR 12,60,000, but the Supreme Court has upheld it. It was made by the State Consumer Disputes Redressal Commission of Punjab. Additionally, the interest rate was reduced from 9% to 7%. A Bench made up of Justices M.R. Shah and C.T. Ravikumar determined after reading the insurance policy that the insured was entitled to the reinstatement value rather than the depreciated value. It was determined that the insured was entitled to INR 29,17,500, which represented the reinstatement value, plus interest at a rate of 7% from the date of the State Commission's order in 2014 until the actual payment