“ Liability of Insurance companies in case vehicle is stolen and unauthorisedly driven”.United India Insurance co. Ltd. Versus Smt. Anita Devi and Ors.

The concise description of the case was that the deceased person was riding a scooter; and the offending car hit the scooter with great force as a result of which the deceased person fell down and sustained injuries. During the inquiry;the Tribunal found that the offending vehicle stolen by the offender. a complaint is already registered with the police authorities.

Justice Sachdeva (Delhi High Court) relied on the Supreme court judgment “United India Insurance Company V. Lehru” and held that; the insurance company is liable to pay compensation to the deceased’s family;even if the offending vehicle stolen and unauthorisedly driven by any person.

The court further said that; the indemnifier can only avoid its liability only in cases where it is capable of proving that there was a willful breach of the policy by the insured.

In the case of “ Kashiram Yadav V. Oriental Fire and General Insurance Co. (1984) SCC 128” ,  the insurance company must establish the fact that; there is a breach of the condition of the policy to absolve from the liability. Unless the insured is at fault and guilty of a breach of the policy conditions;the insurer cannot escape from the obligation to indemnify the insured.A similar law also  laid down in Skandia’s Sohan Lal Passi and Kamla’s case.

Furthermore, the court has also observed that if the argument of the insurance company accepted; then it would defeat the concept of beneficial legislation for the sufferers of accident and ultimately burdened;the owner of the vehicle who has insured his vehicle against theft and accident even though he is not at fault.

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