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

4. The learned counsel would contend that the Full Bench of this Court in the case of NEW INDIA ASSURANCE CO. LTD. v. YALLAVVA AND ANOTHER passed in M.F.A.No.30131/2010 dated 12.05.2020, while answering the questions referred held that, the Insurer is liable to pay the third 4 party and recover 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 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. But, no such order can be passed against the insurer, if, on the facts and circumstances of a case, a finding is given by the court that the third party (injured or deceased) had played any fraud or was in collusion with the insured, individually or collectively, for a wrongful gain to themselves or cause wrongful loss to the insurer. The Court can also fasten the absolute liability on the insurer, if there is any breach of condition which is enumerated under Section 149(2) of the Act or any other condition of the policy if the Insurance Company has waived breach of any such condition or has taken the special responsibility to pay by collecting extra premium by covering any type of risk depending upon facts of each case.
Karnataka High Court Cites 42 - Cited by 242 - Full Document
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