Insurer can't alter loss assessed by surveyor

The National Commission concluded a surveyor's report must be given due importance unless there are valid reasons for disagreeing with it

Shivalik Container, a private limited company, was a manufacturer and seller of corrugated boards and boxes to various industrial houses. It had its factory in five sheds. Of these one was used to store raw materials and semi-finished goods, while the remaining four had manufacturing equipment and machinery.

The company had always been meticulous about maintaining insurance coverage right from its inception in 1997. It had two policies from Oriental Insurance. While both covered buildings, plant and machinery, and stocks, one of the policies also covered “other contents”.

A major fire broke out on December 9, 2010, resulting in extensive damage to