Hazardous goods carriage breaches policy coverage when transport exceeds permit limits and strict insurance terms apply.

Where an insured truck was used to carry hazardous goods beyond the permit conditions and the policy's limited use clause, the SC held that the loss fell outside insurance coverage. The statutory scheme and motor vehicle rules permitted restriction of a goods carriage to unhazardous goods, and dangerous or hazardous cargo attracted special controls. On the facts, ether solvent was treated as ether, used synonymously with ethyl ether, and was therefore hazardous and flammable. Because the vehicle was carrying such goods contrary to the permit, the contract had to be enforced strictly within its limits, and the claim was not payable.

---

---

Issues: Whether the insurance claim was outside the policy coverage because the insured truck was carrying hazardous goods in breach of the transport permit and the policy limitation as to use, and whether ether solvent was the same substance as ethyl ether.

Analysis: The policy limited use to carriage of goods within the meaning of the Motor Vehicles Act, 1988. The statutory scheme under Sections 2(13), 2(14), 2(31), 66(1), 77, 78 and 79 of the Act, together with Rules 91(c), 129 and 137 of the Central Motor Vehicles Rules, 1989, showed that a goods carriage permit could be confined to unhazardous goods and that dangerous or hazardous goods, including ethyl ether, attracted special restrictions. The permit held by the insured authorised only unhazardous goods. The material carried was ether solvent, which was a descriptive name for ether, and ether was used synonymously with ethyl ether. Since the goods were hazardous and flammable, carriage of them was contrary to the permit and outside the policy coverage. The terms of the insurance contract had therefore to be strictly enforced according to their limits.

Conclusion: The claim was not payable under the policy, and the appeal succeeded.

Final Conclusion: The insured could not recover for loss caused while carrying hazardous goods beyond the scope of the permit and the insurance contract, so the consumer forum decisions granting relief were set aside and the complaint stood dismissed.

Ratio Decidendi: An insurer is liable only within the strict limits of the policy, and where the insured vehicle is used in breach of statutory permit conditions by carrying hazardous goods, the resulting loss falls outside policy coverage.

---