#Insurance Coverage

Madhya Pradesh High Court rules that a borrower of a vehicle is deemed an 'owner' under Section 163-A of the Motor Vehicles Act, entitling survivors to Rs. 1,00,000 compensation with 6% interest from the filing date. The ruling clarifies insurance liability extends to borrowers even in the absence of formal ownership transfer, reinforcing no-fault liability protections for accident victims.

The NCDRC has ruled that banks commit deficiency in service under the Consumer Protection Act when they deduct insurance premiums for hypothecated assets but fail to secure coverage, making them liable for losses. This sets a critical precedent for financial institutions to honor their contractual obligations to borrowers, reinforcing consumer rights in banking services.

MP High Court rules that an insurance company cannot be removed from a motor accident claim merely on its allegations of lapsed coverage. The tribunal must adjudicate the dispute through evidence before deleting the insurer as a party, ensuring procedural fairness in claims under the Motor Vehicles Act.

Chhattisgarh High Court rules that insurers cannot reject compensation claims under Section 147 of the Motor Vehicles Act, 1988, if the deceased passenger was a helper or authorized representative of the vehicle owner. The judgment clarifies that such passengers are not 'gratuitous' and thus fall within the scope of insurable liability, impacting motor insurance claims and third-party liability disputes.

The Supreme Court ruled that when a vehicle is requisitioned by the State for public purposes like elections, the requisitioning authority-not the insurer-bears liability for accidents. This holding clarifies that statutory control under the Motor Vehicles Act overrides legal ownership, directly impacting government bodies and insurers in similar claims.

Punjab & Haryana High Court rules that motor insurance coverage commences upon premium payment, even if the policy document reflects a later effective date. The ruling holds insurers liable for accidents occurring on the premium payment date, overturning the Tribunal’s exoneration of the insurer in a claim where the premium was received on the accident date.

MP High Court Gwalior rules that motor insurance coverage is invalid if the policy effective date follows the accident date. The court quashed a Lok Adalat award, emphasizing that liability hinges on the policy being active at the time of the incident, impacting insurers and claimants in motor accident disputes.

Gauhati High Court holds that motor insurance coverage begins at premium payment, not future stipulated date, reinforcing Section 64VB(2) of the Insurance Act, 1938.