LAKHMI CHAND vs RELIANCE GENERAL INSURANCE

The Supreme Court upheld the rejection of the appellant's insurance claim under the Consumer Protection Act, 1986, stating that the appellant violated the terms of the insurance policy by allowing five passengers in a goods-carrying vehicle, which had a permitted seating capacity of only 1+1. The Court emphasized that such a violation constitutes a deficiency in service as per Section 12 of the Consumer Protection Act. Consequently, the appeals were dismissed, affirming the decisions of the National Consumer Disputes Redressal Commission and the Haryana State Consumer Disputes Redressal Commission.