Published on: October 26, 2023 at 00:03 IST
Court: High Court of Delhi
Citation: Gurmeet Singh V. New India Assurance Co. Ltd. (2023)
Honourable High Court of Delhi has held that an Insurance Company has a right to recover the compensation paid to the claimants from the owner of the vehicle, if the insured vehicle is being used at a public place without a proper permits. It is held that where a person is found driving a vehicle beyond the route or area or region for which the Permit has been granted, it would be a case of driving the offending vehicle without a valid Permit.
15. Section 149 of the Act casts a duty on the Insurance Company to satisfy a judgment and Award against the persons insured in respect to the third-party risks. Section 149 (2) of the Act entitles the Insurance Company to defend the claim inter-alia on the ground that there has been a breach of a condition of the policy, inasmuch as the transport vehicle was being used for a purpose not allowed by the Permit under which the vehicle is used. Section 149 of the Act, insofar as it is relevant to the present appeal, is reproduced herein below:
25. A reading of the above provisions would show that a Permit is granted in relation to a particular route/area/region. The route/area/region is, therefore, a prime consideration and an essential condition of a Permit. The same is sacrosanct, functional, and fundamental, with various provisions of the Act emphasising on the same. Driving of the offending vehicle in an area or on a route which is not permitted by a Permit would, therefore, amount to driving the motor vehicle without a valid Permit and shall be a fundamental breach of the conditions of an insurance policy.
Drafted By Abhijit Mishra