'Insurance can't be denied for law violation'

5 Nov 2007 The Times of India

NEW DELHI: The National Consumer Commission has held that insurance companies, if the terms of the policy were not breached, cannot refuse to entertain claims on the pretext that the insured violated some other laws or conditions.

Allegations that the insured violated some other laws would not entitle insurers to deny just claims of "hapless" consumers, a commission bench comprising Justice MB Shah and members Rajya Lakshmi Rao and KS Gupta said.

It was deciding a petition filed against the Chennai State Consumer Commission verdict, justifying the repudiation of an accident claim by the United India Insurance Company Ltd on the ground that the car, at the time of accident, was being plied without the 'fitness certificate' as required under the Motor Vehicle Act.

http://timesofindia.indiatimes.com/India/Insurance_cant_be_denied_for_law_violation/articleshow/2517727.cms

With Thanks from THE TIMES OF INDIA

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