SC rules no insurance claim for stolen vehicle without valid registration

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New Delhi, Sep 30 | The Supreme Court on Thursday ruled that an insurance company can reject the claim, if a vehicle does not have valid registration, as it denied a claim for the theft of a car having temporary registration.

A bench headed by Justice U.U. Lalit and comprising Justices S. Ravindra Bhat and Bela M. Trivedi said: “What is important is this court’s opinion of the law, that when an insurable incident that potentially results in liability occurs, there should be no fundamental breach of the conditions contained in the contract of insurance.”

The bench added that on the date of theft, the vehicle was driven without a valid registration, amounting to a clear violation of Sections 39 and 192 of the Motor Vehicles Act, 1988. “This results in a fundamental breach of the terms and conditions of the policy, as held by this court in Narinder Singh (supra), entitling the insurer to repudiate the policy,” it noted.

The top court set aside the judgment of the National Consumer Disputes Redressal Commission (NCDRC), which dismissed a plea by the United Insurance Company Ltd, challenging the Rajasthan state commission’s order to pay Rs 6,17,800 to Sushil Kumar Godara, along with 9 per cent interest, for claims for his new Bolero car, which was stolen from Jodhpur. The bench noted that in the present case, the temporary registration of Godara’s vehicle had expired on July 28, 2011.

Godara, on July 28, went to Jodhpur on business, staying at a guest house at night and parking his vehicle outside the premises. In the morning, he found that car was stolen.

The bench noted that Godara plied his vehicle and took it to Jodhpur, where the theft took place. “It is of no consequence, that the car was not plying on the road, when it was stolen; the material fact is that concededly, it was driven to the place from where it was stolen, after the expiry of temporary registration. But for its theft, the respondent would have driven back the vehicle,” it said.

It noted that the vehicle was taken to another city, where it was stationed overnight in a place other than Godara’s premises. “There is nothing on record to suggest that the respondent had applied for registration or that he was awaiting registration,” it said.

“This court is of the opinion that the NCDRC’s order cannot be sustained. Furthermore, the NCDRC should not have overlooked and disregarded a clear binding judgment of this Court – it also should not have disregarded its ruling in Naveen Kumar (supra), as well,” the court stressed.

Source: IANS

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Share Market Closing Bell: Nifty ends below 16,100, Sensex falls 303 pts

Share Market Closing Bell: Nifty ends below 16,100, Sensex falls 303 pts

Dalal Street found no relief with incessant sell off during the month. Nifty traded on a bearish note and ended at 16025.80 with loss of 99.35 points or 0.62 percent following weak global cues on Wednesday. While Banknifty closed at 34339.50 on the higher side with marginal gain of 49.35 points.

bhaskarlive market closing

The weakness in US stocks is playing out globally with signs of higher inflation, which has spoiled investors’ appetite for the Indian market as well. Rising India VIX to 25.28 has led Indices to big intraday swings on both sides. Sectorally maximum sectors closed on the negative side as Nifty IT and Nifty Media sheds more than 3 percent each. While Nifty Financial Services ended on a positive side gaining 0.68 percent.

In nifty stocks, NTPC, HDFCLIFE, SBILIFE were the top gainers while ASIANPAINT, ADANIPORT and TECHM were the prime laggards. Coming to the OI Data, on the call side highest OI witnessed at 16200 followed by 16300 strike price while on the put side, the highest OI was at 15800 strike price. Technically, Nifty has formed three black crow patterns in the daily chart suggesting bearishness would remain intact. We expect a rise in volatility as well on monthly expiry day.

Riding against the trend may not be beneficial for short term traders. All major moving averages are lying above 16300 levels. Indicators such as MACD and RSI are still struggling to overcome the oversold zone in the daily time frame. Overall, Nifty is having support at 15800 mark while on the upside 16300 may act as an immediate resistance for monthly expiry. While Banknifty has support around 33500 while resistance is placed at 35200 on the daily chart.

Om Mehra
Research Associate
Choice Broking

Source: Choice India

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