Pay for loss incurred to minimise damage

The National Commission rejected New India's plea, saying the consent had become invalid as the insurer itself had not abided by the claim amount recommended by the surveyor

Mangalam Organics, which was in the business of terpene chemical products such as camphor, had obtained two policies from New India Assurance.

A fire occurred on June 22, 2015 due to short circuit. It started in the resin plant. When it reached the common utilities connected to the camphor plant, all the material under process had to be drained to prevent an explosion which would have escalated the loss. Managalam lodged a claim for Rs 29,26,64,553 under the two policies. It requested for the ad hoc release of Rs 7.5 crore for re-commissioning the resin plant.

The surveyor inspected the