Insurance - policy - Excess - passenger - number permitted - violation - Liability - strict construction - breach - contract
PETITIONER: B.V. NAGARAJU Vs. RESPONDENT: M/S. ORIENTAL INSURANCE CO. LTD.DIVISIONAL OFFICE, HASSAN DATE OF JUDGMENT: 20/05/1996 In this appeal by special leave, the question of importance arising therein is whether the alleged breach of carrying humans in a goods' vehicle more than the number permitted in terms of the insurance policy, is so fundamental a breach so as to afford ground to the insurer to eschew liability altogether? Ancillary to the question is the poser : whether the terms of the policy of insurance need be construed strictly or be read down to advance the main purpose of the contract as viewed by this Court in Skandia Insurance Co. Ltd. vs. Kokilaben Chandravadan & Ors. [1987 2 SCC 654]? It is plain from the terms of the Insurance Policy that the insured vehicle was entitled to carry 6 workmen, excluding the driver. If those 6 workmen when travelling in the vehicle, are assumed not to have increased any risk from the point of vi...