Insurance company can't reduce claim of insured who got government relief: Jammu & Kashmir High Court

The Jammu and Kashmir High Court ruled that an insurance company cannot reduce the claim amount payable to an insured claimant on the grounds that the claimant received government relief. The case involved Oriental Insurance Company, which reduced the compensation for a shop owner who had received ₹3.5 lakh from the government for damages during riots. The court, led by Chief Justice Tashi Rabstan and Justice MA Chowdhary, held that the insurance company must pay the full insured amount regardless of any other relief received. The court emphasized that it is not the insurance company’s business to consider other sources of relief when settling claims3.