United India Insurance Co. Ltd. vs SYED BUDE

THE appellants in these appeals are the opposite parties in O.P. Nos. 277/1995 and 279/1995 on the file of the Guntur District Forum. THEy question the orders of the District Forum both dated 7.11.1997 allowing the complaints of the respondents in these appeals on the sole ground that the District Forum failed to correctly appreciate the effect of the violation of the conditions in the insurance policies taken in respect of their respective vehicles involved in the accidents. THE default relied upon by the appellants is carrying of passengers unauthorisedly in the vehicles at the time of accidents involving the vehicles concerned. On behalf of the appellants the learned Counsel vehemently contended that any violation of the terms and conditions of the insurance policies issued by the respondents would have to result in rejection of their claims under the said policies. We find that the question raised by the learned Counsel is covered by the decision of Apex Court in B.V. Nagaraju v. M/s. Oriental Insurance Co. Ltd., II (1996) CPJ 18 (SC)=(1996) 4 SCC 647, reiterating the view taken in the earlier decision in Skandia Insurance Co. Ltd. v. Kokilaben Chandravadan & Ors., (1987) 2 SCC 654. THE Supreme Court held referring to the term of the insurance policy under the caption limitations as to use (which is similar to the one sought to be relied upon by the learned Counsel in the present appeals), as follows: "THE National Commission went for the strict construction of the exclusion clause. THE reasoning that the extra passengers being carried in the goods vehicle could not have contributed, in any manner, to the occurring of the accident, was barely noticed and rejected sans any plausible account; even when the claim confining the damage to the vehicle only was limited in nature. We thus, are of the view that in accord with the Skandia case, the aforesaid exclusion term of the insurance policy must be read down so as to serve the main purpose of the policy that is to indemnify the damage caused to the vehicle, which we hereby do."

On the facts in the present two appeals also it is found by the District Forum that passengers taken in the vehicles involved in the accident were not in any way responsible for the accident that occurred involving the two vehicles of the respondents. We find that the decision of the Supreme Court in B.V. Nagaraju''s case, (supra), applies on all fours to the facts of the present case and the District Forum was well justified in relying upon the principle laid down by the '' Supreme Court. THE appeals F.A. Nos. 114/1998 and 115/ 1998 are accordingly dismissed. No costs. Appeals dismissed. ______________