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The Commission ruled that police records establishing chassis/engine identity override the need for a formal recovery memo. Repudiating a theft claim due to colour change or fake plates - despite confirmed vehicle identity - amounts to deficiency in service, warranting full IDV as constructive total loss.
The Supreme Court ordered insurers to honour motor-accident claims and insisted that every vehicle carry a valid third-party policy under Section 146. It also directed a standardized four-layer policy covering driver, passengers and vehicle, with technology-enabled enforcement and extended policy periods. The ruling impacts insurers, vehicle owners and regulators nationwide.
The West Bengal State Consumer Commission ruled that insurers cannot rely on Insured Declared Value (IDV) as the default payout - compensation must be tied to verified actual loss, with the burden on the insurer to prove colour alteration or fraud. This clarifies that surveyor reports alone cannot override documented damage, empowering policyholders against arbitrary claim repudiation.
The Karnataka High Court ruled that a person who unloaded goods from a truck and was subsequently killed in an accident is not automatically a gratuitous passenger under the Motor Vehicles Act. Since the deceased was engaged in the carrier’s business and had not yet ceased to be functionally connected to the transport operation, the insurer remains liable under Section 166, reinforcing that liability turns on functional role, not mere passenger classification.
Gauhati High Court rules that a motor insurance policy issued after the accident date but backdated is fraudulent and void ab initio, absolving the insurer of liability. The ruling underscores that claimants must recover compensation directly from the vehicle owner, not the insurer, regardless of a prior MACT award.
Delhi State Consumer Commission rules that insurers cannot repudiate theft claims for unregistered vehicles if the policy contains no explicit exclusion and the vehicle was not being driven at the time of theft. The ruling clarifies that statutory compliance under Section 39 MV Act is not a blanket bar to insurance coverage, impacting policyholders and insurers alike.
Madhya Pradesh High Court holds that insurance companies cannot evade liability under motor vehicle insurance merely by alleging the deceased was a passenger without credible evidence.