This case concerned the hire purchase of a used truck by the appellant. Vehicle insurance was provided by the respondent’s insurance company. During one of his trips, a passenger asked him to stop and give him a lift. As soon as he stopped the truck, the passenger attacked the driver and fled with it. A police report was filed, and the respondent finance company was notified. The insurance company, however, rejected the claim for violation of the contract. He sought compensation from the District Consumer Disputes Forum, State Commission, and National Commission. The cases were rejected by each. Last but not least, he approached the Supreme Court.

Judgment: According to the Supreme Court, the appellant committed no fault. It can be considered a policy breach, but not a fundamental one, to terminate the policy and end the insurance coverage. Appeals judges ordered the respondent insurance company to pay 75% of the insured amount along with 9% interest annually, as from the filing date. Additionally, the insurance company was ordered to pay compensation of Rs. 1,00,000 by the court.