Supreme Courtjudgment related an insurance claim for a truck damaged by fire. The case reviews previous decisions from the State Consumer Disputes Redressal Commission and the National Consumer Disputes Redressal Commission regarding the validity of the truck’s permit. The central issue revolved around whether an All India Permit (National Permit), valid until October 2017, required an additional authorization fee for a truck operating within its registered state.The Supreme Court ultimately ruled in favor of the appellant, asserting that the insurance company improperly repudiated the claim as the truck was within its home state and the national permit was valid. The court ordered the insurance company to pay the claim amount with interest from the date of the original complaint.
Consumer Protection Act, 1986, Section 2(1)9g) and 14(1)(d) – Consumer – Repudiation of insurance claim – Compensation – Interest – Insured truck caught fire on account of short-circuit on during the validity of insurance cover – State Commission allowed the claim on non-standard basis – National Commission by holding that the insurance claim cannot be allowed in the absence of any valid permit thereby setting aside the order passed by the State Commission – Contention on behalf of the appellant that the All India Permit (National Permit) was issued having validity period with effect from 14.10.2012 to 13.10.2017 and for State of Bihar, the permit was in force from 13.10.2012 to 13.10.2013 meaning thereby, on the date the truck caught fire on 08.06.2014, there was a valid National Permit in existence – Respondent National Insurance Company has vehemently argued that as per the terms and conditions of the permit, the fee was deposited for a period with effect from 13.10.2012 to 13.10.2017 and the authorization fee was not deposited beyond 14.10.2013 and, therefore, and in the absence of non-depositing of authorization fee, National Permit cannot be said to be a valid permit – Held that National Permit is certainly valid up to 13.10.2017 – The authorization fee was required to be paid only when the truck was moving out of State of Bihar as it was registered in the State of Bihar and the truck caught fire on account of short-circuit on 08.06.2014 in the State of Bihar itself and, therefore, the respondent company could not have repudiated the claim on such a frivolous ground – The permit in question was issued by the competent authority in Bihar and, therefore, there was no requirement of paying authorization fee when the truck was being used in the State of Bihar and as per the terms and conditions of the National Permit, authorization fee was required to be paid only when the truck was moving out of State of Bihar – Appellant was certainly entitled for the insurance claim as held by the State Commission and, therefore, the order passed by the National Commission deserves to be set aside – Respondent National Insurance Company directed to process the claim of the appellant and to pay the amount to the appellant within a period of 60 days –Claim became due in the year 2014 and it was repudiated by the respondent National Insurance Company in the year 2014 itself – The order of the State Commission allowing the claim was passed in the year 2017 which was reversed by the National Commission in the year 2020 – Appellant was not only entitled for the entire claim amount right from the date it became due but he is also entitled for interest from the date of the complaint made before State Commission till the date, the amount is actually paid to him – The appellant shall be entitled to interest @ 9% per annum and the same with the proposed amount be paid positively within 60 days from today.
(Para 6 to 8)
Binod Kumar Singh V. National Insurance Company Ltd.
Supreme Court: 2025 INSC 154: (DoJ 07-02-2025)
