In Brief
A truck owner whose vehicle was stolen after the driver gave a humanitarian lift to stranded passengers on a cold wintery night claimed insurance. The insurer rejected the claim, arguing that giving a lift violated the policy terms. The Supreme Court held that while carrying passengers may technically breach the policy, it is not a fundamental breach that terminates coverage. The Court ruled the insurer must prove the breach is fundamental to avoid liability. The appeal was allowed, directing the insurer to pay 75% of the insured amount (Rs. 7,28,000) plus interest at 9% per annum and Rs. 1,00,000 compensation."
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