Lakhmi Chand Vs. Reliance General Insurance
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Head Note
The Consumer Protection Act,1986 - Section 2 (1) , Section 12 , Section 14
Consumer - Insurance - Repudiation - Ground of breach of terms of policy - In order to avoid liability Insurance Company must not only establish the defence claimed in the proceeding concerned, but also establish breach on the part of the owner/insured of the vehicle for which the burden of proof would rest with the insurance company- No evidence produced by Respondent-Company to prove that the accident occurred on account of the overloading of passengers in the goods carrying vehicle - For the insurer to avoid his liability, the breach of the policy must be so fundamental in nature that it brings the contract to an end - Accident was caused on account of the rash and negligent driving of the offending vehicle by its driver, against whom a criminal case was registered for the offences under the provisions of the IPC - These facts have not been taken into consideration by either the State Commission or National Commission while setting aside the order of the District Forum - Judgment and order of the National Commission passed as well as of State Commission liable to be set aside- Judgment and order of District Forum restored - A sum of Rs.25,000/- awarded to the appellant towards the cost of the litigation.
Topic(s)-Consumer - Insurance - Repudiation