#Non-Standard Settlement

The West Bengal State Consumer Commission ruled that carrying one extra passenger in a goods vehicle does not automatically void an own-damage claim unless the insurer proves a causal link to the accident. It allowed a 75% non-standard settlement and remanded for quantification, holding that policy breaches must be material to the loss.

The West Bengal State Consumer Commission ruled that an insurer cannot repudiate a claim merely for a policy breach (invalid driving licence) unless it directly caused the loss. The Commission awarded 75% of the insured declared value with 7% interest, setting a precedent for non-standard settlements where breach and loss lack proximate causation.