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Consumer lawyer: the insurance company cannot appoint the second surveyor, if the report of first surveyor is against the insurance company, without any basis; SC.

Supreme Court of India

Justice Hemant Gupta

The SC in the case titled as "New India Assurance Company Limited versus Luxra Enterprise Private Limited", held that the insurer cannot appoint the second surveyor or keep on appointing one surveyor  after another, until the surveyor gives report in favour of the insurance company. The said practice of insurance company held to be illegal and arbitrary.

It was also held that the surveyor again and again cannot be appointed - until there is any proof that the report given by the first surveyor is arbitrary, or excessive. In the present case, on the basis of third surveyor report, the claim of the respondent was repudiated by the insurance company - which was held to be illegal and against the settled principles of law, therefore, the Appeal of the insurance company was dismissed by the Supreme Court.


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