repudiation valid or not?
Suri.Sravan Kumar
(Querist) 15 October 2010
This query is : Resolved
X regd his vehicle as private car with the Insurance Co but got it regd as Motor cab. He did not inform the Insurance co about registering the vehicle as cab. The car met with an accident and the insured lodged claim with the Insurance co for the damages. The driver was holding LMV non transport DL. Insurance co repudiated the claim stating that the driver was not holding a valid DL as he was holding LMV non transport. He renewed the policy twice as private car only.
whether the repudiation is valid or not? Any citations in support.
shravankumar
R.Ramachandran
(Expert) 15 October 2010
The Insurance Law is based on the doctrine of 'ubarima fide' i.e. utmost goodfaith.
Prima facie, if the person getting insurance does not disclose complete, correct and full facts, then the utmost goodfaith doctrine will fail. Therefore the Insurance Company will be well within its right to repudiate the claim.
However, if there are any decisions favouring the insured, (in the factual situations) I am not sure.
Kirti Kar Tripathi
(Expert) 15 October 2010
I agree with the view expressed by Mr. Ramachandran
Sri Vijayan.A
(Expert) 16 October 2010
I agree with Mr.Ramachandran.
However, there is a little chance, if u can prove that the company has not disclosed about their T &C, to suceed.
So try in that sense.
