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

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

Flat owner without legal title has consumer rights

In a significant judgment, the South Mumbai Consumer Forum has held that a flat owner legally occupying the flat would be a consumer, even if his title to the flat might be in dispute before a competent court. Thurlow owned a flat in a co-operative society. Appuswami was residing with him. In 1976, Appuswami got married in the same flat, and his wife started residing in the same flat. They had three children, born and brought up in the same flat. After Thurlow expired in 2004, Appuswami approached the High Court for inheritance to Thurlow's estate but expired while the matter was pending. His wife and children were brought on record. Subsequently, the society intervened, contending Appuswami did not have any right to the flat and it should be handed over to the Society. The Appuswami family continued to reside in the flat, and even pay the society's outgoings and maintenance charges. Later, the society stopped collecting maintenance charges from all members, as it earned...
Post a Comment
Read more

NCLT - Mere admission of receipt of money does not qualify as a financial debt

Cause Title : Meghna Devang Juthani Vs Ambe Securities Private Limited, National Company Law Tribunal, Mumbai, CP (IB) No. 974/MB-VI/2020 Date of Judgment/Order : 18.12.2023 Corum : Hon’ble Shri K. R. Saji Kumar, Member (Judicial) Hon’ble Shri Sanjiv Dutt, Member (Technical) Citied:  Carnoustie Management India Pvt. Ltd. Vs. CBS International Projects Private Limited, NCLT Swiss Ribbons Pvt. Ltd. & Anr vs. Union of India & Ors. (2019) Sanjay Kewalramani vs Sunil Parmanand Kewalramani & Ors. (2018) Pawan Kumar vs. Utsav Securities Pvt Ltd 2021 Background Application was filed under section 7 of the Insolvency and Bankruptcy Code, 2016 alleging loan of Rs, 1.70 cr is due. The Applicate identified herself as the widow and heir of the lender but could not produce any documents proving financial contract between her Late husband and the CD but claimed that the CD has accepted that money was received from her husband. The applicant subs...
Post a Comment
Read more