Insurer must pay declared value for total loss

The National Commission agreed with the State Commission's view that neither party had managed to prove that the price mentioned by them was the last market price

Ravish Singh purchased a secondhand sport utility vehicle (SUV) and got the registration and insurance documents transferred to his name. Iffco Tokio General Insurance charged a premium amounting to Rs 1,19,915 for the declared value of the vehicle of Rs 29,31,140, as recorded in the insurance policy, which was valid from March 30, 2017, to March 29, 2018. Also, add-on coverage was obtained for an additional premium of Rs 35,906.46 for depreciation waiver, and Rs 20,954 for new vehicle replacement coverage.

The terms of the policy specifically provided that in the event of a total loss, the claim would be