SUPREME COURT: INSURER HAS NO LIABILITY ONCE THERE IS BREACH OF CONDITION OF INSURANCE POLICY

The Supreme Court, in MS Middle High School v. HDFC Ergo General Insurance Co Ltd, has upheld a high court judgment which held that once there is breach of condition of insurance policy, the liability cannot be fastened on the insurer.

The Punjab and Haryana High Court had affirmed the findings of the tribunal that the offending vehicle did not possess a permit and that constituted breach of condition in insurance policy. The said judgment was assailed through a special leave petition.

Dismissing the SLP, the bench of Justice AK Goel and Justice UU Lalit observed: “We do not find any ground to interfere with the impugned order. The High court rightly held that once there is breach of condition of policy, the liability cannot be fastened on the insurer.” The Bench also observed that high court had relied upon apex court decisions in National Insurance Company Limited v. Challa Bharathamma and Ors., (2004) 8 SCC 517, New India Assurance Company Limited v. Asha Rani & Ors., (2003) 2 SCC 223 and National Insurance Company Limited v. Nicolleta Rohtagi & Ors., (2002) 7 SCC 456.