It was observed by the Supreme Court that an insurance claim can be rejected if the vehicle is driven or used WITHOUT a valid registration as it would lead to a fundamental breach of terms and conditions of the insurance contract.
It was observed by the bench of Justices Uday Umesh Lalit, S. Ravindra Bhat and Bela M. Trivedi that when there is an insurable incident that potentially results in liability occurs, there shall be no fundamental breach of conditions contained in the insurance contract.
The court held that if on the day of theft, if the vehicle has been used or driven without valid registration, it will amount to a fundamental breach.
