Fines for seeking wrong claims

The claim has to be settled within the scope and ambit of the coverage mentioned in the policy

Ganesh Anand Bhat, the proprietor of Shree Ganesh Agencies, owned two adjacent shops at Mulund. However, he had taken a shopkeeper's insurance policy from New India Assurance which covered only one shop.

A fire occurred in which both the shops were gutted, and the goods stored were destroyed. Bhat lodged an insurance claim. A surveyor was appointed who assessed the loss for both the shops but observed that the claim would be payable only for one shop which had been insured. The claim was settled by paying Rs 21,16,666, which was accepted by Bhat without protest.

Bhat later filed a complaint before