B.V. NAGARAJU vs ORIENTAL INSURANCE CO

The Supreme Court addressed whether a breach of the insurance policy terms regarding carrying passengers in a goods vehicle constitutes a fundamental breach allowing the insurer to deny liability. The Court held that the terms of the insurance policy should be interpreted in a manner that aligns with the contract's main purpose, as established in Skandia Insurance Co. Ltd. vs. Kokilaben Chandravadan & Ors. The Court ultimately ruled in favor of the appellant, affirming the State Commission's decision to award compensation for repair costs incurred due to the accident, despite the insurer's claims of breach.