Insurance company to deny insurance claim if there is no proper registration of vehicle: SC

The complainant had obtained an insurance policy from the insurer for his Bolero car, somewhere in Punjab, though he was a resident of Sri Ganganagar, Rajasthan. The vehicle had a temporary registration which however, expired on September 19, 2011. The sum insured was ₹6,17,800. The respondent took the car to Jodhpur where he parked the car outside the guest house where he was staying. It was stolen from there at night.

This led to the insurance claim. The insurance company rejected the claim on the ground that the temporary registration of the vehicle had expired on July 19, 2011 and the respondent did not get the vehicle permanently registered. The respondent then moved the District Consumer Protection Forum. but the District Forum dismissed the plea against the insurer. This led to the appeal before the Supreme Court.

The Bench of Justices UU Lalit, Ravindra Bhat and Bela M Trivedi said that when an incident involves a vehicle which has no valid registration, then the insurance company can deny payment of the insurance claim since it is a breach of the conditions of the agreement. (United India Insurance vs Sushil Kumar Godara)

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