Back
VINOD S. BHARDWAJ
Oriental Insurance Company Ltd. – Appellant
Versus
Permanent Lok Adalat – Respondent
JUDGMENT
Vinod S. Bhardwaj, J.
Both the above mentioned writ petitions are being decided by a common judgment as they arise out of same Award dated 26.05.2022 passed by Permanent Lok Adalat (Public Utility Services), Chandigarh.
2. For the facility of reference, the facts are being extracted from CWP-16427-2022 titled as "Oriental Insurance Company Ltd. and another v. Permanent Lok Adalat and another".
3. The respondent-Applicant- Varun Bhasin (petitioner in connected CWP-25127-2022) filed an application under Section 22-C of the Legal Services Authorities Act, 1987 before Permanent Lok Adalat (Public Utility Services), Chandigarh for seeking directions to the petitioner- Insurance Company to make payment of Rs. 3, 00, 000/- towards the sum assured for the car alongwith interest @ 18% per annum from the date of loss and alongwith other charges including compensation towards harassment and mental agony as well as litigation charges. It had been averred that the respondent-Applicant purchased Maruti DZire car bearing Registration No.CH-01-BN-4786, Model 2013. The said car was insured with the petitioner-Insurance Company vide policy No.231291/31/2018/759 valid from 20.11.2018 to 19.11.
A breach of essential terms of an insurance policy, such as using a private vehicle for hire, precludes the claimant from receiving benefits under the policy.
Liability of the insurance company in case of violation of R.T.O. rules and breach of permit conditions
Insurer's liability persists unless a breach of policy conditions is established; mere driving by an unlicensed driver does not absolve the insurer from payment obligations.
The court reaffirmed that insurance companies are liable to indemnify victims injured in goods vehicle accidents, even where passengers exceed policy limits, unless such violations are fundamental.
A valid light motor vehicle license includes transport vehicles, and insurers cannot deny liability without proving negligence by the vehicle owner.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
