MANJEET SINGH vs NATIONAL INSURANCE COMPANY LTD.

The Supreme Court held that the insurance company cannot deny liability for theft of a vehicle based on the driver carrying passengers, as this does not constitute a fundamental breach of the insurance policy. The Court referred to established precedents, including National Insurance Co. Ltd. v. Swaran Singh and Lakhmi Chand v. Reliance General Insurance, emphasizing that not every violation of policy terms absolves the insurer of liability. The Court overturned the lower forums' decisions and ruled in favor of the claimant, directing the insurance company to settle the claim.