NEW INDIA ASSURANCE CO LTD Vs. NARESH KUMAR

JUDGEMENT

(1.) THE Appellant New India Assurance Co. Ltd. impugns a judgment dated 03.03.2012 whereby while granting a compensation of Rs.4,29,779/- in favour of the Respondent No.1, the Appellant was made liable to pay the compensation in spite of the fact that it successfully proved the breach of the terms of the policy.

(2.) IT is urged by the learned counsel for the Appellant that since the Appellant proved the breach of the terms of the policy, it ought to have been exonerated from its liability to indemnify the insured instead of granting recovery rights.

(3.) FOLLOWING Swaran Singh, (Supra) this Court in National Insurance Company Limited v. Sanjay Kumar, ILR, 2007 (2), Delhi, 733 held that even when breach of the terms and conditions of policy of insurance in terms of Section 149(2)(a) of the Motor Vehicle Act, 1988 is proved, the insurance company would still be required to pay the sum awarded to the claimant, but would be entitled to the recovery rights against the insured.