Whether carrying excess passenger will be a cause to repudiate insurance claim by insurer, without proof to substantiate its action

Last updated: 08 February 2023

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The Supreme Court has ruled that an insurer cannot arbitrarily reject a claim for damage to a goods-carrying vehicle simply because it was carrying excess passengers. The court emphasised that the insurer must provide concrete evidence to prove that the accident occurred due to overloading. Without such proof, the breach is not considered fundamental enough to void the insurance policy, and the claim should be honoured.

Court :
Supreme Court of India

Brief :
The said judgment passed by the State Commission was challenged by the appellant before the National Commission, which dismissed the petition on the ground that the appellant had violated the terms of the insurance contract. Review petition was also dismissed

Citation :
CIVIL APPEAL NOS.49-50 OF 2016 (ARISING OUT OF SLP (C) NOS.37534-37535 OF 2013-DATED: 07/01/2016

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Judgement posted by

FCS Deepak Pratap Singh

Associate Vice President - Secretarial & Compliance (SBI General Insurance Co. Ltd.)

Dear Friends, MyselfFCSDeepak P. Singh ( B.Sc.. LLB, FCS. FIII, CIAFP, CRMP, ID) , A Fellow Member of ICSI, Law Graduate ,Fellow Member of Insurance Institute of India, Certified Independent Director ,Certified Insurance Anti Fraud Professional , Certified Risk Governance Professional ( ICSI-III) and cleared Limited I ... Read more

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