`take it or leave it" policy by insurance company is unjustified and unethical

By Judgment Dated: 30-7-2007, in Civil Appeal between Dharmendra Goel Vs. Oriental Insurance Co.Ltd., held that, Section 146 of the Motors Vehicles Act, 1988 casts an obligation on the owner of a vehicle to take out an insurance policy as provided under Chapter 11 of the Act and any vehicle driven without taking such a policy invites a punishment under Section 196 thereof. SC further observed that, in the light of this stringent provision and being in a dominant position the insurance companies often act in an unreasonable manner and after having accepted the value of a particular insured good disown that very figure on one pretext or the other when they are called upon to pay compensation. This `take it or leave it' attitude is clearly unwarranted not only as being bad in law but ethically indefensible. SC further rejected that the contention of the insurance company that it was for the insured to produce evidence to prove that the surveyor's report was on the lower side in the light of the fact that a price had already been put on the vehicle by the company itself at the time of renewal of the policy and the insurance company is bound by the value put on the vehicle while renewuing the policy.

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