Narinder Singh, purchased a Mahindra Pick UP BS-II 4WD vehicle and got it insured for Rs. 4,30,037/- with the New India Assurance Company Ltd. for the period 12.12.2005 to 11.12.2006.
The vehicle was temporarily registered for one month period, which expired on 11.1.2006. However, on 2.2.2006, the vehicle met with an accident and got damaged.
The complainant lodged FIR and informed New India Assurance Company Ltd. about the accident., who appointed a surveyor who assessed the loss at Rs.2,60,845/- on repair basis.
However, New India Assurance Company Ltd. repudiated the claim on the ground that :
Rajeev Hetta, who was driving the vehicle at the time of the accident, did not possess a valid and effective driving licence; and
also the vehicle had not been registered after the expiry of the temporary registration.
The complainant filed a consumer complaint before the District Forum. The District Forum allowed the complaint and directed New India Assurance Company Ltd. to indemnify the complainant to the extent of 75% of 4,30,037/- along with interest at the rate of 9% per annum thereon with effect from the date of filing of the complaint.
New India Assurance Company Ltd. preferred appeal before the State Commission. The State Commission allowed the appeal of New India Assurance Company Ltd.
The Complainant preferred revision petition before the National Commission which was dismissed.
Thereafter, the Complainant preferred SLP before the Supreme Court. The Supreme Court did not find any infirmity in the orders passed by the State Commission and the National Commission and dismissed the SLP.
The Supreme Court observed:
“In our view…….. using a vehicle on the public road without any registration is not only an offence punishable under Section 192 of the Motor Vehicles Act but also a fundamental breach of the terms and conditions of policy contract.”
I am giving the link to the Supreme Court Decision dt. 4 September 2014