Insurance – Pay and Recovery – Utility & Goods Vehicle
Judgment dated 4.9.2025 of the Supreme Court of India in Civil Appeal Nos.5177-81 of 2022 of Shyam Lal Vs. Shriram General Insurance Co. Ltd and others
Insurance – Pay and Recovery – Utility Vehicle – Limitation as to Use of goods vehicle
Insurer must honour valid policies
The accident involved Mahindra Bolero Camper registered as a utility van with a contract carriage permit and seating capacity of 4+1. The Insurance Company issued comprehensive package policy after verifying the registration and permit of the vehicle.
The Tribunal upheld the full liability of the Insurer. However, the High Court
HELD that the utility vehicle is not a goods carriage and therefore, the limitations as to use applicable to goods vehicle as carriage of goods do not apply to the utility van. The Insurer cannot later deny coverage based on restrict clauses insistent with the documents of registration of the vehicle as utility van and contract carriage permit. The Insurer even had not taken the defence that the vehicle was insured as a goods vehicle. The order of the High Court to pay and recovery was quashed and the full liability of the insurer was restored.
