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Oriental Insurance Co. Ltd vs Brij Mohan & Ors on 15 May, 2007

"10. It is well settled law that the insurer is liable to pay the third party and recover the same from the insured even if there is breach of any condition recognized under section 149(2), even if it is a fundamental breach (that is, breach of condition which SCCH-14 38 MVC.1894/2022 & 1895/2022 is the cause for the accident) and the insurer proves the said breach in view of the mandate under section 149(1) of the Act. [See: National Insurance Co. Ltd., v. Laxmi Narain Dhut, 2007 ACJ 721 (SC); Oriental Insurance Co. Ltd., vs. Brij Mohan, 2007 ACJ 1909 (SC) and Shamanna v. Divisional Manager, Oriental Insurance Co. Ltd., 2018 ACJ 2163 (SC) and Full Bench decision of this court in New India Assurance Co. Ltd., v. Yallavva, 2020 ACJ 2560 (Karnataka). In the instant case, the driver of the offending Lorry was driving the same in an intoxicated condition and in violation of the terms and conditions contained in the insurance policy. The Tribunal erred in exonerating the insurance company from its liability to pay the compensation. In view of the aforesaid legal principles, the respondent No.2-insurance company is held liable to pay the total amount of compensation to the claimants at the first instance and recover the same from the insured. To the aforesaid extent, the judgment passed by the Claims Tribunal is modified."
Supreme Court of India Cites 18 - Cited by 319 - Full Document

New India Assurance Co., Ltd., vs Yallavva W/O Yamanappa Dharnakeri on 12 May, 2020

"10. It is well settled law that the insurer is liable to pay the third party and recover the same from the insured even if there is breach of any condition recognized under section 149(2), even if it is a fundamental breach (that is, breach of condition which SCCH-14 38 MVC.1894/2022 & 1895/2022 is the cause for the accident) and the insurer proves the said breach in view of the mandate under section 149(1) of the Act. [See: National Insurance Co. Ltd., v. Laxmi Narain Dhut, 2007 ACJ 721 (SC); Oriental Insurance Co. Ltd., vs. Brij Mohan, 2007 ACJ 1909 (SC) and Shamanna v. Divisional Manager, Oriental Insurance Co. Ltd., 2018 ACJ 2163 (SC) and Full Bench decision of this court in New India Assurance Co. Ltd., v. Yallavva, 2020 ACJ 2560 (Karnataka). In the instant case, the driver of the offending Lorry was driving the same in an intoxicated condition and in violation of the terms and conditions contained in the insurance policy. The Tribunal erred in exonerating the insurance company from its liability to pay the compensation. In view of the aforesaid legal principles, the respondent No.2-insurance company is held liable to pay the total amount of compensation to the claimants at the first instance and recover the same from the insured. To the aforesaid extent, the judgment passed by the Claims Tribunal is modified."
Karnataka High Court Cites 42 - Cited by 242 - Full Document
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