Insurance Claim Denied for Stolen Tractor: Court Sides with Company.
11 June 2024
Insurance Claim/Money Rejected >> Insurance
A recent court case involved a dispute over a tractor theft insurance claim. The tractor owners (insured) filed a claim after their vehicle was stolen, but the insurance company rejected it. The crux of the issue hinged on whether the insured's actions violated the insurance policy's terms.
The insured argued they were entitled to compensation despite potentially breaching the policy. The insurance company, however, maintained that the insured's negligence caused the theft. According to them, the policy was violated because the driver left the tractor unattended with the key still in the ignition.
Initially, the District Forum sided with the insured. They believed the insurance company should have settled the claim on a reduced basis, even if a policy violation occurred. However, the State Commission, on appeal by the insurance company, reversed this decision. The State Commission concluded that the insured's actions constituted a breach of Condition No. 5 of the policy, which mandated taking precautions to safeguard the vehicle.
The insured challenged the State Commission's verdict through a revision petition. However, the court dismissed their petition. The court agreed with the State Commission's reasoning. They found no evidence of wrongdoing by the insurance company and upheld their decision to reject the claim due to the policy breach. The court emphasized the insured's failure to take reasonable steps to protect the vehicle, as stipulated in the policy.