IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH FAO No.5584 of 2006 (O&M) Date of decision:27.09.2010 National Insurance Company Limited ....Appellant versus Naresh Kumar and others ...Respondents II. FAO No.5585 of 2006 (O&M) National Insurance Company Limited ....Appellant versus Smt. Sudesh and others ...Respondents CORAM: HON’BLE MR. JUSTICE K. KANNAN ---- Present: Mr. L.M.Suri, Senior Advocate, with Mr. Neeraj Khanna, Advocate, for the appellant. None for the respondents. ---- 1. Whether reporters of local papers may be allowed to see the judgment ? 2. To be referred to the reporters or not ? 3. Whether the judgment should be reported in the digest ? ---- K.Kannan, J.(Oral) 1. The Insurance Company is in appeal challenging the liability cast on them in both the cases where the claimants themselves had averred that they were travelling in a vehicle paying a fare for the transport. The vehicle had been insured as a private vehicle and the driver also did not have a transport vehicle endorsement which he would FAO No.5584 of 2006 (O&M) - 2 - have required if the vehicle was used as a taxi. There was evidently a violation of terms of the policy by the use of a vehicle for a purpose which was not authorized through a permit. The need for a permit for transport vehicle and the purpose of permit have been laid down by the Hon'ble Supreme Court in National Insurance Company Limited Versus Challa Bharathamma and others-2005(1) PLR 102 2. The Insurance Company will only be liable to satisfy the claim and shall have a right of recovery from the insured for violation of terms of the policy. 3. The award shall stand modified and the appeals are allowed on the above terms. (K.KANNAN) JUDGE 27.09.2010 sanjeev