#Insurable Interest

An insurer cannot reject a theft claim on non-transfer of ownership, Delhi State CDRC ruled, holding liability arises once a policy is issued and premium paid, barring insurers from using ownership-transfer grounds to avoid liability under MV Act, 1988.

Oriental Insurance’s refusal to honour a fire-insurance claim was struck down after the NCDRC ruled that a policy covering cotton bales owned by third-party mills still creates a valid insurable interest. The commission ordered payment of Rs 1.02 crore plus interest, signalling that insurers cannot rely on lack of ownership to reject claims.