Overloading Can't Be Fundamental Breach Of Insurance Policy, NCDRC Directs Bharti Axa To Pay Partial Amount

The National Consumer Disputes Redressal Commission (NCDRC) has ruled that overloading a commercial vehicle, while a violation of traffic laws, cannot be considered a "fundamental breach" of the insurance policy that would justify a complete repudiation of a claim. In a case against Bharti AXA General Insurance, the NCDRC directed the insurer to pay 75% of the assessed claim amount. The insurer had rejected the claim for a damaged vehicle, citing that it was overloaded at the time of the accident. However, the commission observed that the insurance company had not proven that the overloading was the direct cause of the accident. Therefore, while acknowledging the breach, the NCDRC held that it was not so fundamental as to void the entire policy. It ordered the claim to be settled on a "non-standard" basis, providing partial relief to the policyholder.