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Theft is an in built peril of a Package/Comprehensive be a violation of condition of the Policy as it deprives the
Insurance Motor Vehicle Policy. No extra premium is insures of a valuable right to investigate as to the
charged for that. However, a Third party or an Act only commission of the theft and to trace/help in tracing the
policy does not cover the theft risk. Ensure that your car is vehicle.
comprehensively covered, and that the insurance policy is
valid. The only thing worse than having your car stolen is that Condition 5 of Motor Insurance Policy:
realizing that your car's insurance policy has expired
afterwards. All policy terms and conditions are standardized. The issue is whether the fact that the respondent alighted
from the car to answer the call of nature and leaving the
The Tariff Advisory Committee has worded these terms and key in the ignition tantamounts to violation of conditions
conditions based on various verdicts of the Apex Court. A no.5 of the insurance policy. This has been dealt with in
Motor Insurance Policy is a complete contract enforceable length by National Commission in RP no. 375 of 2013 - Shri
at any court of law. Supreme Court of India in United India Sukhwinder Singh vs Cholamandalam MS - decided on 30th
Insurance Company Limited v. M/s. Harchand Rai Chandan August 2013, wherein it was held that:
Lal reported in JT 2004 (8) SC 8 held that the terms of Policy
have to be construed as it is and nothing can be added or "it is undisputed that the vehicle in question was stolen while
subtracted from the same. The Policy provides that in the the driver of the vehicle had gone to ease himself after
case of theft, the matter should be reported 'immediately'. parking the car on the road side and leaving the keys in the
ignition. The question for determination is whether or not
In the context of a theft of the car, word 'immediately' has aforesaid act of the driver of the car amounts to violation
to be construed strictly to make the insurance company of condition no.5 of the insurance policy? In order to find
liable to pay the compensation. To the similar effect, is the answer to this question, it is necessary to have a look on
Judgment of this Commission in The New India Assurance the aforesaid condition which is reproduced as under:
Company Limited v. Shri Dharam Singh and Another in First
Appeal No. 426 of 2004 decided on 04.07.2006. In the case "The insured shall take all reasonable steps to safeguard
of theft where no bodily injury has been caused to the the vehicle from loss or damage and to maintain it in
insured, it is incumbent upon the respondent to inform the efficient condition and the company shall have at all time,
Police about the theft immediately, say within 24 hours, free and full access to examine the vehicle or any part there
otherwise, valuable time is lost in tracing the vehicle. of any driver or employee of the insured. In the event of
any accident or breakdown, the vehicle shall not be left
Similarly, the insurer should also be informed within a day unattended without proper precautions being taken to
or two so that the insurer can verify as to whether any theft prevent further damage or loss and if the vehicle be driven
had taken place and also to take immediate steps to get before the necessary repairs are effected, any extension of
the vehicle traced. The insurer can coordinate and the damage or any further damage to the vehicle shall be
cooperate with the Police to trace the vehicle. Delay in entirely at the insured's own risk".
reporting to the insurer about the theft of the vehicle would
This condition in our considered view requires insured to take
reasonable steps for protection of the insured vehicle from
any loss or damage. The leaving of the key in the ignition
of the car on all occasions cannot be termed as so serious
breach so as to disentitle the insured from seeking claim
under the insurance policy. Whether or not there is breach
of condition it will always depend upon the facts of the
case.
The car is said to have been stolen when the driver parked
the vehicle at road side and went to ease himself, forgetting
to remove the keys from ignition. This lapse on the part of
The Insurance Times, September 2015 19
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