Summary
The Court upheld repudiation of a theft claim where the insured had driven his vehicle to another city after its temporary registration expired. It did not matter that the vehicle was parked when stolen: its use without valid registration constituted a fundamental policy breach under the binding decision in Narinder Singh. No application for permanent registration or extension was shown. The State Commission and National Commission orders granting relief were set aside and the consumer complaint dismissed.
Issues
- Whether theft of a parked vehicle could be distinguished from accident claims where the vehicle had been driven after expiry of temporary registration.
- Whether the insurer could repudiate for fundamental breach arising from use without valid registration.
Provisions considered
- Sections 39 and 192, Motor Vehicles Act, 1988Driving or permitting use without valid registration contravened the statutory registration requirement. The insured’s post-expiry journey constituted the fundamental breach supporting repudiation of the theft claim. (¶¶ 11, 13, 14)
Held
- The insured’s temporary registration had expired before he drove to another city. There was no proof that he had sought permanent registration or an extension. The vehicle’s theft while parked did not remove the significance of the preceding unregistered use. (¶¶ 2, 3, 10, 13)
- Narinder Singh applied despite involving accidental damage rather than theft. The material circumstance was that the insured drove the unregistered vehicle to the place where it was stolen. In these circumstances, violation of Sections 39 and 192 amounted to a fundamental breach permitting repudiation. (¶¶ 11, 12, 13)
- The National Commission should have followed the binding Supreme Court decision and its own ruling in Naveen Kumar. Its order and the State Commission’s award were set aside, the complaint dismissed and the appeal allowed without costs. (¶¶ 14, 15)
Result
Appeal allowed without costs. National Commission and State Commission orders set aside; consumer complaint dismissed.