Volume 2 Issue 7

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The Delhi High Court has legislated that a Insurance Company can't avoid its liability if offending vehicle is stolen and unauthorisedly driven by someone else

Date of News: 

24-01-2022

Date of Publication: 

10-02-2022

Unique ID:

202281528

Name of the Author: 

Soumya Kanti Mandal

Field of Law: 

Insurance Law

Content of News:

The Delhi High Court has legislated that the insurance company cannot skip it�s liability on account of compensating the deceased's family , Even if the offending vehicle was stolen or even unauthorisedly pushed by someone else. Justice Sanjeev Sachdeva also added that in order to avoid the liability of insurance to the insured, The insurance company must have to prove that there was a willful breach of terms and conditions on the part of that specific insurance of the vehicle , which was based upon a judgement of the apex court in United India Insurance Company Limited vs. Lehru and Ors (2003). The Delhi High Court had already upheld the order passed by the tribunal , In which the tribunal directed the insurance form to pay the compensation to the insured And also directed the insurance firm to identify the person who had stolen the car. In the case of United India Insurance Company Limited versus Smt. Anita Devi and Ors. , The court had already declared that liability insurance company in case of vehicle stolen and unauthorisedly driven. The concise description of the case was that , an eco car was being driven very rashly When it hits the scooter with great force, as a consequences the victim who was riding the scooter , fell down succumbed to his injuries immediately. It was the case with insurance company against the decision of tribunal court, they appealed that since the vehicle was stolen and was being driven by the thief , so there is not any question of the liability. The court legitimately observed that if the proposition of the insurance company accepted, then it would be a disaster in terms of the victims of accidents. Not only the insurance companies escape from the very liability but also the insured remains void or remedy-less in this kind of situation. Therefore, the appeal of United India Insurance was denied. The court directed the insurance company to recover the amount from the thief and upholded the direction of the tribunal.

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