Shivraj Vasant Bhagwat vs Smt. Shevanta Dattaram Indulkar And ... on 25 September, 1996
17. A Division Bench of the Bombay High Court in the decision (Shivraj Vasant Bhagwat v. Shevanta Dattaram Indulkar) had occasion to consider a case in which the clause in the Insurance policy was that carrying of passengers in the vehicle except employees not exceeding six in number, where ten employees were taken in the motor truck, whereas the policy also contemplated that maximum of only six persons can be carried. There the Insurance Company claimed that inasmuch as there is violation of terms and conditions of the policy, it is not liable in any way to pay compensation. There the Court ruled thus,
"... The terms of the policy of Insurance has to be construed strictly and to be read down to advance the main purpose of the contract. The main purpose of the policy is to indemnify the damage caused to the vehicle and the inmates, who are injured. It is plain from the terms of the insurance policy that insured vehicle was entitled to carry six workmen excluding driver. If six persons travelling in the vehicle are assumed not to have increased any risk from the point of view of the Insurance Company on occurring of an accident, how could these added persons be said to have contributed to the causing of it. Admittedly, all the 11 persons in the truck were working as labourers on the quarry of the appellant, who is also owner of the truck. Merely because 4/5 labourers more than the agreed six labourers were taken in the truck, it cannot be said to be such fundamental breach that the owner should in all events be denied the indemnification"