Lawstreet Journal

'Insurance Claim can be Denied if Vehicle was Used Without Valid Registration': Supreme Court

Lawstreet Journal 1 Oct 2021 7:16pm

Image courtesy: Lawstreet Journal Judiciary 'Insurance Claim can be Denied if Vehicle was Used Without Valid Registration': Supreme Court

The Supreme Court stated that an insurance claim can be denied if a vehicle is used/driven without a valid registration, as this would be a fundamental violation of the terms and conditions of the insurance contract. 

The bench of Justices Uday Umesh Lalit, S. Ravindra Bhat, and Bela M. Trivedi observed that when an insurable incident occurs that may result in liability, there should be no fundamental breach of the terms of the insurance contract. 

The court ruled that if the vehicle was driven/used without a valid registration on the date of theft, it constituted a fundamental breach.


The policyholder had purchased a new Bolero with a temporary registration in this case. He travelled outside his residence after his registration expired. He parked outside the guest house where it had been stolen. 

He claimed insurance, but it was denied because the vehicle's temporary registration had expired.

Following that, he approached the District Forum, requesting that the insurer pay him the sum insured for the vehicle with a rent of 1,40,000/-, as well as relief for mental anguish and litigation costs.

He filed a complaint with the State Consumer Disputes Redressal Commission after his complaint was dismissed.

Allowing the appeal, the state commission stated that the insurer could not reject the insured's genuine claim on technical, petty, and frivolous grounds of lack of a permanent registration certificate from the competent authority and thus escape its liability to compensate the insured for the loss of the vehicle. 

The insurer's revision… Continue Reading...

Tagged: Insurance Claim   Supreme Court of India  
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