Insurance - Insured Declared Value “IDV” - If both the sides, with their eyes open, had arrived at a particular figure to be the real value of the subject matter of insurance, is it not open to any party to dispute said sum and contend that the real value was something different from what was declared by the parties to be the sum insured unless there is non-disclosure of material facts which may go to the root of the matter and as such the sanctity of the agreement itself may get affected or is vitiated by any misrepresentation, fraud or coercion. 2019 SCeJ 178
Insurance - Insured Declared Value “IDV” – Depreciation – Except in cases where the agreement on part of the Insurance Company is brought about by fraud, coercion or misrepresentation or cases where principle of uberrima fide is attracted, the parties are bound by stipulation of a particular figure as sum insured – Surveyor and the Insurance Company were not justified in any way in questioning and disregarding the amount of “sum insured” – Further depreciation, if any, can always be computed keeping the figure of “sum insured” in mind – The starting figure, therefore, had to be the figure which was stipulated as “sum insured”. 2019 SCeJ 178
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Insurance - Insured Declared Value “IDV” – Depreciation – Starts from the date of insurance based on Sum Insured - If the surveyor was calculating the depreciation from the day when the policy was entered into till the date when the accident occurred, such exercise could certainly be justified - But the exercise undertaken was in the nature of not only considering the depreciation post the policy but even including the period prior thereto - That exercise was already undertaken by the parties and in their assessment the real value of the machine as on the day when the policy was taken out while fixing the “sum Insured” / IDV - In the face of such agreement and understanding, the surveyor could not have calculated depreciation for a period prior to the date of policy or contract - He could have undertaken the exercise post the date of policy to assess the real value of the insured property as on the date when the loss actually took place - For such purposes, the assessment must start with the amount described as “sum insured” on the day when the contract was entered into - It was not open to the Surveyor or to the Insurance Company to disregard the figure stipulated as ‘sum insured’. 2019 SCeJ 178