NATIONAL INSURANCE CO LTD Vs. SURESH BABU

JUDGEMENT

(1.) IN a vehicle having "Permit" for sitting capacity of 19 passengers, if 35 to 36 passengers are carried, whether the insured is entitled to get the compensation for damages caused to the vehicle due to accident?

(2.) THIS question is required to be decided by taking into consideration:

(3.) NO doubt, in case of over-loading of vehicles beyond the license carrying capacity, discretion is given to the Insurance Company to settle the same by paying upto 75%. If that discretion is not properly exercised, the Court/Consumer Fora may interfere and direct the Insurance Company to reimburse the insured appropriately. However, it would depend upon facts of each case. In the present case, as far as policy cover is concerned, there is under declaration of the license carrying capacity in the vehicle. Not only that, the vehicle was overloaded beyond reasonable limits of license carrying capacity. In such a situation, to direct the Insurance Company to pay as if the claim is "non-standard claim" would be unjustified one.