Delhi High Court Ruled : Motor Accident Claim : Whether Insurance Company Liable to Compensate if the Offending Vehicle Was Stolen One?
Delhi High Court Ruled : Motor Accident Claim : Whether Insurance Company Liable to Compensate if the Offending Vehicle Was Stolen One?
The Delhi High Court has recently ruled that an insurance company is liable to provide compensation to a deceased’s family if the offending vehicle was a stolen one and was unauthorizedly driven.
According to a Bench of Sanjeev Sachdeva, the insurance company can only avoid its liability if it can show that there is a wilful breach of policy.
The court passed this order in a plea filed by the insurance company (United Insurance) that challenged the Tribunal’s order that granted recovery rights against the driver of the offending vehicle.
Before the court, the insurance company said that the offending vehicle was a stolen one and was being driven by a professional thief therefore the company was not liable.
The Bench noted that even though the vehicle was stolen a complaint has been lodged at a police station regarding the offending vehicle.
The main issue before the court was whether the insurance company will not be liable if the vehicle was stolen and was driven without permission.
Reliance was placed on United India Insurance Vs. Lehru & Ors by the Apex Court to rule that the insurance company failed to show any wilful breach by the insured.
Therefore, the Court dismissed the appeals and held that the tribunal’s order was correct.
Title: United India Insurance Co Vs Smt Anita Devi & Ors
Case No.: MAC APP 15/2022 & CM APPL 2953 of 2022
