Overloading a Vehicle Cannot Be a Fundamental Breach of Insurance Policy: NCDRC

The National Consumer Disputes Redressal Commission (NCDRC) ruled that mere overloading of a vehicle does not amount to a fundamental breach of an insurance policy.

In a case against Bharti Axa General Insurance, the NCDRC found the insurer had wrongfully repudiated a claim after an accident involving a van carrying an excess load.

The Commission ordered Bharti Axa to pay 75% of the assessed claim amount on a non-standard basis, with interest, as no evidence showed overloading caused the accident.

If not paid within two months, the insurer will face a higher interest penalty.