Laws laid down by supreme court

( ISSUE ;VIOLATION OF TERMS AND CONDITIONS OF THE POLICY)


LAKHMI CHAND VS. RELIANCE GENERAL INSURANCE

[Civil Appeal Nos.49-50 of 2016 arising out of SLP (C) Nos.37534-37535 of 2013]

( ISSUE ;VIOLATION OF TERMS AND CONDITIONS OF THE POLICY)

 

V. GOPALA GOWDA, J.

wherein it was held that if the number of persons travelling in the vehicle at the time of the accident did not have a bearing on the cause of accident, then the mere factum of the presence of more persons in the vehicle would not disentitle the insured claimant from claiming compensation under the policy towards the repair charges of the vehicle paid by the appellant. 

"It is plain from the terms of the Insurance Policy that the insured vehicle was entitled to carry six workmen, excluding the driver.

If those six workmen when travelling in the vehicle, are assumed not to have increased risk from the point of view of the Insurance Company on occurring of an accident, how could those added persons be said to have contributed to the causing of it is the pose, keeping apart the load it was carrying. In the present case the driver of the vehicle was not responsible for the accident. Merely by lifting a person or two, or even three, by the driver or the cleaner of the vehicle, without the knowledge of the owner, cannot be said to be such a fundamental breach that the owner should, in all events, be denied indemnification. The misuse of the vehicle was somewhat irregular though, but not so fundamental in nature so as to put an end to the contract, unless some factors existed which by themselves, had gone to contribute to the causing of the accident

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