Insurance cannot be denied if a lift taker robs your car, the Supreme Court has ruled. Theft insurance in such cases cannot be denied, a Bench of the Supreme Court held.
Manjeet Singh, a truck owner was denied insurance on the ground that he had breached the policy by giving a lift to a passenger who robbed the vehicle during the journey.
The driver on a cold winter night gave a lift to a person standing on the road. It was a humanitarian gesture and cannot be said that a breach nullifies the policy, a Bench comprising Justices Madan Lokur and Deepak Gupta said.
In such claims, where there is a breach of policy, they have been treated to be on-standard and have been directed to be settled at 75 per cent of the insured amount, the court observed. The Bench set aside an order of the National Consumer Disputes Redressal Commission and ordered the insurance company to pay Singh Rs 7.28 lakh.
While directing that the amount be paid along with an interest of 9 per cent the court also ordered compensation of Rs 1 lakh.
OneIndia News
