#Policy Breach

Punjab & Haryana HC upholds insurer's right to recover compensation paid to third-party victims where the insured breached policy terms by attaching two overloaded trolleys to an agricultural tractor. The ruling reinforces that policy violations nullify insurer liability, shifting financial burden back to the insured.

Calcutta High Court rules that insurers cannot reject motor accident claims solely based on delayed FIR filing or unverified allegations of fake licenses. The court mandates a prior inquiry and hearing for the vehicle owner before denying compensation, enhancing the award to Rs. 14 lakh with 6% interest. This reinforces procedural fairness in third-party liability claims under the Motor Vehicles Act.

The Gauhati High Court ruled that an insurer cannot deny motor accident compensation solely by claiming the driver’s license had expired - it must demonstrate a material breach of policy terms and actual negligence. This shifts the burden of proof to insurers and reinforces policyholder protection under Section 147 of the MV Act, affecting claims handling nationwide.

Bombay High Court reaffirms that insurers must compensate motor accident victims under Section 149 of the Motor Vehicles Act, even if the policy terms are breached. The insurer retains the right to recover the paid amount from the at-fault party, reinforcing the Act’s victim-centric mandate over contractual technicalities.

Karnataka High Court rules that insurers are not liable for compensation under Section 149 of the Motor Vehicles Act if the claimant violates road safety regulations (e.g., riding on a tractor mudguard) and the driver lacks a valid license. The liability shifts to the vehicle owner, reinforcing strict compliance with statutory conditions for third-party insurance claims.

Bombay High Court Nagpur Bench rules that insurers cannot escape liability in motor accident claims without adducing concrete evidence of policy breach, reinforcing the statutory burden of proof under Section 149 of the Motor Vehicles Act. The judgment clarifies that mere allegations or procedural lapses are insufficient to repudiate third-party claims, impacting insurers' defense strategies in motor accident tribunals.

Chhattisgarh High Court holds insurers cannot deny liability for deceased agricultural labourers without proving policy breach; burden lies on insurer.