Overcrowded buses cannot claim own damage insurance cover: NCDRC

The National Consumer Dispute Redressal Commission has held that vehicles carrying passengers in excess of its capacity, cannot claim own damage insurance cover. The Bench comprising of Justices Ajit Bharihoke and Rekha Gupta upheld the State Forum view that in an own damage claim case, defense of overloading is available to the insurer. In this case, the District Forum had allowed the own damage claim against the insurer by the bus owner. But on appeal, the State Consumer Dispute Redressal Forum [Read order] had observed that there is ample material on record to show that the bus having seating capacity of 35+1 was carrying passengers much in excess of its capacity, and hence in these circumstances if the claim is not paid by the insurer it cannot be said to be deficiency in service. In third party cases defense of overloading might not be available but this is an Own Damage case and a person cannot be permitted to take advantage of his own wrongs, the Forum had said.

Article referred: http://www.livelaw.in/overcrowded-buses-cannot-claim-damage-insurance-cover-ncdrc/