Skip to main content

In the case of theft of vehicle, breach of condition is not germane

In CHOLAMANDALAM MS GENERAL INSURANCE COMPANY LTD. vs TANUSREE MONDAL, the appeal was filed by the insurer against the concurrent findings of the District Forum and the State Commission wherein the two fora below found deficiency in service on the part of the insurance co.

In this case, the respondent/insured's car was stolen against which she filed FIR. The insurer disputed her claim on the sole ground that the complainant intimated about the theft of vehicle after expiry of 14 days and as such she had violated the conditions of the insurance policy.

The  respondent/insured complained before the District Forum which allowing the complaint held that the reason for rejection by the insurer is too fragile to merit acceptance. A man of common prudence shall primarily lay emphasis on extensive search of the stolen vehicle. Complainant left no stone unturned in search of the vehicle. Local P.S. was informed, P.S. case was started. This prompt action on the part of the complainant must not go unrewarded. She was definitely in perplexed state of mind when she found it stolen. Naturally this delay of 14 days to inform O.P. no. 2 cannot be regarded fatal to extinguish her hope for reimbursement of the insured sum.

The State Forum on appeal agreeing the District Forum and referring to the judgment of the Supreme Court in National Insurance Company Limited Vs. Nitin Khandelwal, held that in the case of theft of vehicle, breach of condition is not germane. In case of material breach of policy terms and conditions, an Insurer has definite ground to repudiate a claim, otherwise not.  In the case of a theft related case, if there is nothing to suspect the bona fide of a claim, Insurance Company should not act contrary to the spirit of the policy that envisages indemnification of loss arising out of such peril. NCDRC was of view that in case of a theft claim what is relevant and material for adjudicating the claim is whether the theft had indeed taken place or not and whether the occurrence took place within the subsistence of the insurance policy or not.

A revision petition was filed by the insurer before the National Commission which also sided with the lower tribunals and made some important observation on compensation which has been highlighted here.

Comments

Post a Comment

Most viewed this month

Michigan House Approves 'Right-to-Work' Bill

Amid raucous protests, the Republican-led Michigan House approved a contentious right-to-work bill on  Dec 11 limiting unions' strength in the state where the (Union for American Auto Workers)  UAW was born. The chamber passed a measure dealing with public-sector workers 58-51 as protesters shouted "shame on you" from the gallery and huge crowds of union backers massed in the state Capitol halls and on the grounds. Backers said a right-to-work law would bring more jobs to Michigan and give workers freedom. Critics said it would drive down wages and benefits. The right-to-work movement has been growing in the country since Wisconsin fought a similar battle with unions over two years ago. Michigan would become the 24th state to enact right-to-work provisions, and passage of the legislation would deal a stunning blow to the power of organized labor in the United States. Wisconsin Republicans in 2011 passed laws severely restricting the power of public s...
Post a Comment
Read more

Power to re-assess by AO and disclosure of material facts

In AVTEC Limited v. DCIT, the division of the Delhi High Court held that AO is bound to look at the litigation history of the assessee and cannot expect the assessee to inform him.  In the instant case, the Petitioner, engaged in the business of manufacturing and selling of automobiles, power trains and power shift transmissions along with their components, approached the High Court challenging the re-assessment order passed against them. For the year 2006-07, the Petitioner entered into a Business Transfer Agreement with Hindustan Motors Ltd, as per which, the Petitioner took over the business from HML.  While filing income tax return for the said year, the petitioner claimed the expenses incurred in respect of professional and legal charges for the purpose of taking over of the business from HML as capital expenses and claimed depreciation. Article referred: http://www.taxscan.in/assessing-officer-bound-look-litigation-history-assessee-delhi-hc-read-order/8087/
Post a Comment
Read more

The recovery of vehicles by the financier not an offence - SC

Special Leave Petition (Crl.) No. 8907  of 2009 Anup Sarmah (Petitioner) Vs Bhola Nath Sharma & Ors.(Respondents) The petitioner submitted that  respondents-financer had forcibly taken away the vehicle financed by them and  illegally deprived the petitioner from its lawful possession  and  thus,  committed  a crime. The complaint filed by the petitioner had been  entertained  by  the Judicial Magistrate (Ist Class), Gauhati (Assam) in Complaint Case  No.  608 of 2009, even directing the interim custody of the vehicle (Maruti  Zen)  be given to the petitioner vide order dated  17.3.2009.  The respondent on approaching the Guwahati High  Court against this order, the hon'ble court squashed the criminal  proceedings  pending   before  the  learned Magistrate. After hearing both sides, the Hon'ble Supreme Court decided on 30th...
7 comments
Read more