The Supreme Court of India allowed an insurance claim in North Eastern Development Finance Corporation Ltd. (NEDFI) vs. M/s L. Doulo Builders and Suppliers Co. Pvt. Ltd., holding that once loss is caused by fire, the cause of the fire becomes immaterial, unless expressly excluded by the policy. The dispute arose from a fire that damaged a cold storage unit insured against fire-related risks. The insurer resisted the claim by questioning the origin and circumstances of the fire. The Supreme Court rejected this approach, reiterating that in a standard fire insurance policy, the insurer’s liability arises once it is established that loss or damage was caused by fire. The Court clarified that the insured is not required to prove how or why the fire occurred, so long as the loss falls within the policy coverage and is not hit by any specific exclusion. The Court emphasized that insurance contracts must be interpreted in a manner favourable to the insured, particularly when exclusions are not clearly attracted. Since the loss was undeniably caused by fire and there was no policy violation, repudiation of the claim was unjustified. Accordingly, the insurer was directed to honour the claim, reinforcing consumer protection principles in insurance law.