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In the case of UNITED INDIA INSURANCE CO. LTD. Versus SUSHIL KUMAR GODARA (Civil Appeal Nos 5887 OF 2021), a divisional bench of the Hon'ble Supreme Court of India comprising of HON'BLE MR. JUSTICE UDAY UMESH LALIT, HON'BLE MR. JUSTICE S. RAVINDRA BHAT and HON'BLE MS. JUSTICE BELA M. TRIVEDI delivered a judgment on 30 September 2021 allowing the appeals made by UNITED INDIA INSURANCE CO. LTD. by setting aside the order of the State Commission dated 20 March 2015. AMIT KUMAR SINGH, learned Counsel, have appeared on behalf of the appellants. The Court has used the ratio of Narinder Singh Vs. New India Assurance Co. Ltd ((2014) 9 SCC 324) for giving a decision in this case.
The brief fact of this case is that the policy holder SUSHIL KUAR GODARA had purchased a new Bolero which had a temporary registration. That registration lapsed on 19 July 2011. The respondent who is also the complainant in this case neither got an extension of the temporary registration beyond 19 July 2011 of his vehicle nor applied for permanent registration. The respondent-complainant had gone to Jodhpur on 27 July 2011 and stayed overnight there in a guest house. His Bolero car was parked outside the guest house premises in Jodhpur. The respondent-complainant on the morning of 28 July 2011 found that his car had been stolen as it was missing from the place it was parked.
The respondent claim of insurance was repudiated by the appellant UNITED INDIA INSURANCE CO. LTD on 23 January 2013 on the following grounds:(i) The insurance policy condition was violated as there was a delay in intimating the insurance company about the theft of the vehicle. (ii) The Bolero car of the respondent-complainant has temporarily registered which the respondent did not get permanently registered even after its expiry on 19 July; and (iii) One more condition of the insurance policy was violated as the vehicle which was parked outside the premises of the guest house in Jodhpur was unattended.
The Hon’ble Supreme Court laid emphasis that driving an unregistered vehicle on a public road is a fundamental breach of the terms and conditions laid down in the policy document. The Hon’ble also said that driving an unregistered vehicle on a public road is an offense punishable under Section 192 of the Motor Vehicles Act, 1986.
The Hon’ble Supreme Court opined that it is important that no fundamental breach of the terms and conditions of the insurance contract occurs when there is an insurable incident that potentially results in liability. In this case, the insurance policy condition was violated as there was a delay in intimating the insurance company about the theft of the vehicle. One more condition of the insurance policy was violated as the vehicle which was parked outside the premises of the guest house in Jodhpur was unattended. Even the Bolero car being driven after being stolen without any proper registration is a violation of Sections 39 and 192 of the Motor Vehicles Act, 1986. The same ratio was used in Narinder Singh Vs. New India Assurance Co. Ltd ((2014) 9 SCC 324) which has entitled the insurer to repudiate the policy.
The divisional bench of the Hon'ble Supreme Court of India comprising of HON'BLE MR. JUSTICE UDAY UMESH LALIT, HON'BLE MR. JUSTICE S. RAVINDRA BHAT and HON'BLE MS. JUSTICE BELA M. TRIVEDI allowed the appeals made by UNITED INDIA INSURANCE CO. LTD. by setting aside the order of the State Commission dated 20 March 2015. The Court has used the ratio of Narinder Singh Vs. New India Assurance Co. Ltd ((2014) 9 SCC 324) for giving a decision in this case.
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