Insurance company’s arbitrary fitness certificate will not work and compensation will have to be given even if there is no permit, High Court

Insurance companies offer all kinds of tempting promises and offers when it comes to motor vehicle insurance, but when it comes to compensation after an accident, companies try to evade terms and conditions. But recently, the Karnataka High Court, during a hearing in a case, said that insurers cannot evade the obligation to pay compensation even if the certificate of fitness (FC) and vehicle permit is not renewed.

The Karnataka High Court has set aside a trial court’s decision in a case that had earlier ordered the school bus owner to pay compensation to the family of the accident victim and not the insurance company, news agency PTI reported. . Because the school bus owner did not have a fitness certificate and permit on the day of the accident. In this case, the High Court has directed the insurance company to compensate the school bus owner by paying the full compensation amount.

According to the report, in this case the insurance policy was in force on the date of the accident, but the validity of the permit and the fitness certificate had expired. Have given.

The Karnataka High Court held that the insurance company would not have issued the policy “unless the certificate of fitness is in force and it appears that the certificate of fitness has expired after the issue of the policy.” Further, as far as the permit is concerned, the court pointed out that, when the permit is about to expire and the application for a new one is made, the temporary permit is issued for the interval period, and it has nothing to do with renewal. Not there.”

The Court observed that “it must be held that the permit was in force on the day the accident occurred,” adding that “the insurance company cannot deny its responsibility to indemnify the appellant’s liability.”

 What was the whole matter?

 According to the report, on September 28, 2015, Syed Wali was traveling on a motorcycle with another man, Mohammad Shali, when he met with an accident with a school bus on the road. Syed Wali died tragically in this accident. After which his wife Bano Begum and children Malan Begum and Maula Hussain filed a claim for compensation. In this case, the insurance company claimed that the school bus did not have a fitness certificate and its permit was not in force despite the insurance policy being in force.

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