LAKSHMANBHAI NAGINDAS PARMAR Vs. UNITED INDIA INSURANCE COMPANY

JUDGEMENT

(1.) The appellant is the original complainant who is owning a rikshaw which met with an accident resulting into damage to his vehicle. The District Forum has dismissed the complaint on the ground that the driver of the rikshaw has taken additional passengers which was in violation of the policy conditions and, therefore, the Insurance Company was not liable to make any payment of the damages. There appears to be no dispute regarding the damages caused. The appellant states that he has himself reduced the claim and has only prayed for the damages which have been accepted by the other side as damages to his vehicle.

(2.) Mr. Vakharia the learned Advocate appearing on behalf of the Respondent submits that the complainant has committed breach of the policy conditions and, therefore, the Company is not liable for any damage and supports the judgement given by the District Forum.

(3.) There is no dispute that the rikshaw is owned by the appellant which was given to his driver. It also appears that the driver has taken additional passengers in breach of one of the conditions of the policy. However, we have held in Complaint No.131/91 in the case of Jagdish Harilal Thakkar V/s. New India Assurance Company Limited that taking additional passengers is not a fundamental breach which will absolve the Insurance Company from all liabilities. According to the instructions issued by the Insurance Company such type of breach is considered to be non standard claim for which they have adopted a policy to make payment of 75%. We have given full reasoning to arrive at this decision. Therefore we do not repeat the same.