Hemant Patel, a real-estate broker, lived in Delhi with his wife and two children. He owned a bungalow in Karol Bagh which was insured with Elite Insurance Company, New Delhi, for ₹ 35 lakh. On December 31st 2024, Hemant

No, Hemant was not eligible to receive the claim amount for the reported loss that he had suffered. The principle of 'utmost good faith' ( uberrimae fidei ) is fundamental to all insurance contracts. This principle requires both the insured and the insurer to disclose all material facts truthfully. Any breach of this principle, such as misrepresentation or non-disclosure of material facts, can render the contract voidable at the option of the innocent party. In this case, the surveyor's investigation revealed several red flags: Significant discrepancies: Hemant's statements regarding the list of stolen items and their true value showed significant mismatches. This suggests an attempt to inflate the claim amount. Financial motive: The surveyor noted that Hemant's financial condition was not good before the burglary, and he had increased his insurance coverage just days before the incident. This raises suspicion of a potential motive for fraud. These findings strongly indicate that Hemant acted fraudulently by either misrepresenting the facts of the loss or intentionally causing/exaggerating the loss for financial gain. Insurance is designed to indemnify for actual losses due to unforeseen events, not to provide a means for financial enrichment through deceit. Therefore, based on the evidence of discrepancies and potential fraudulent intent, the insurance company was justified in rejecting Hemant's claim on the grounds of fraud. Hemant's eligibility for the claim is negated by his breach of utmost good faith and the fraudulent nature of the claim.