In Brief
The Supreme Court allowed the insured's appeal against rejection of a motor insurance claim. An insured owner's goods-carrying vehicle was damaged in an accident caused by negligent driving of a third-party vehicle. The insurer rejected the claim, arguing the vehicle carried more passengers than permitted under the policy. The Court held that an insurer must prove both that a breach occurred and that it caused or contributed to the accident. Since the accident resulted from third-party negligence unrelated to passenger overloading, the insurer could not deny liability. The judgment restored the District Forum's order and awarded Rs. 25,000 additional costs, reaffirming that burden of proving breach and causation rests on the insurer.
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