| ACCIDENT / DISABILITY
BENEFIT IN A LIFE INSURANCE CONTRACT
As per clause 10.2 of the policy document pertaining to Accident
Benefit, one of the conditions under which the additional sum
assured is not payable is “If the disability or the death of
the Life Assured shall result from his committing any breach
of law”. What constitutes a “breach of law”? We present herein
below some of the cases decided by various State Commissions
and the National Commission on “Breach of Law”.
CASES PERTAINING TO BREACH OF LAW
1. In the SCDRC, Chattisgarh (1(2004) CPJ 163) it was held:
“Sec 128 of the M.V. Act provides that no driver of two
wheeler motor cycle shall carry more than one person in addition
to himself. In this instant case there were two pillion riders
ie., two additional persons besides himself. Therefore it is
clear violation of Sec 128 which constitutes a breach of law
And also “The term ‘breach of law. is wide enough to
cover breach of any provision of law including the provisions
of M.V. Act.
1988.”
2. In I (2004) CPJ 102, the SCDRC, Uttaranchal has held:
“In this case the driver was holding a driving licence
by which he was not authorized to drive the vehicle which he
was driving and the accident took place as a result of the vehicle
itself. In this case, the accident is the direct result of the
driving of the driver”.
3. In II (1995) CPJ 208 (NC), The National Commission held
that “ A transport vehicle,
which has been defined in clause 47 of Sec. 2 of the M.V. Act
meant to be a service vehicle, a goods carriage, an education
institution bus or a private service vehicle. The goods carriage
was a transport vehicle and the driver was not having specific
authorization for driving suéh a vehicle from the transport
dept which is required under Sec. 3 of M.V. Act.
Based on the above, SCDRC, Chandigarh has
held that (2004 (3) CPR 461) : Where Driver holding light
motor vehicle licence was driving the LMV used as transport
vehicle without an endorsement to that effect by the Transport
Authority on his driving licence, it constitutes a breach (of
law).
No effective driving licence : New India Assurance
Vs S. Arumugam in AP 25/99 Decided on 9.2.2004 - 2004 (3) CPR
386 (SCDRC, Chennai)
Important point (Held) : “The vehicle was driven by a person
who did not have any effective or valid licence and thus it
was driven by an un authorized person”.
“The National commission has held in a decision reported in
1996 (1) CPR 78 that if the driver did not have an effective
driving licence on the date and even pending appeal, licence
has been renewed, still it cannot protect the interest of the
insured, since the licence can be effective only from the date
of such revival”.
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