Contracts of Insurance III

Sushil, on 28.07.2011, went to Jodhpur, for business purposes, in one Bolero [Temporary Registration No. PB-11-T-5101 from 20.06.2011 to 19.07.2011]. Sushil stayed at Geeta Guest House and found next morning, his Bolero had been stolen.

There is nothing on record to suggest, Sushil had applied for registration or was awaiting registration. Narinder Singh v. New India Assurance Co. Ltd., (2014) 9 SCC 324 applies. When an insurable incident that potentially results in liability occurs, there should be no fundamental breach of the conditions contained in contract of insurance. On date of theft, Bolero [Temporary Registration No. PB-11-T-5101 from 20.06.2011 to 19.07.2011] had been driven/used without a valid registration, amounting to a clear violation of Sections 39 and 192 of The Motor Vehicles Act, 1988. This entitles the insurer to repudiate.

Hon’ble Justice S. Ravindra Bhat, United India Insurance Co. Ltd. v. Sushil Kumar Godara, [Civil Appeal No. 5887 of 2021].