Valid permit under an insurance policy preserved indemnity and supported interest on delayed claim payment.

The insured truck's National Permit remained valid on the date of the fire, because the permit was in force until 13.10.2017 and the incident occurred in Bihar on 08.06.2014, where the additional authorisation fee was not relevant. On that basis, absence of the fee did not invalidate the permit or defeat indemnity under the policy. Repudiation for want of a valid permit was therefore unjustified, and interest was payable on the delayed claim amount from the date of the complaint until realisation.

---

---

Issues: (i) whether the truck had a valid National Permit on the date of the fire so as to entitle the insured to claim indemnity under the policy; (ii) whether the insurer was justified in repudiating the claim on the ground of absence of a valid permit and whether interest was payable on the delayed claim amount.

Issue (i): whether the truck had a valid National Permit on the date of the fire so as to entitle the insured to claim indemnity under the policy.

Analysis: The permit on record showed that the National Permit remained valid up to 13.10.2017. The vehicle caught fire in Bihar itself on 08.06.2014, and the authorization fee was relevant only when the vehicle moved outside Bihar. Since the incident occurred within Bihar during the currency of the permit, the absence of additional authorization fee could not render the permit invalid for the purpose of the claim.

Conclusion: The permit was valid on the date of the incident, and the insured was entitled to the insurance claim.

Issue (ii): whether the insurer was justified in repudiating the claim on the ground of absence of a valid permit and whether interest was payable on the delayed claim amount.

Analysis: Repudiation rested on an untenable view of the permit conditions. The claim had become due in 2014, was repudiated the same year, and remained unpaid despite the State Commission's order in favour of the insured. The delay in payment justified award of interest from the date of complaint before the State Commission until actual payment.

Conclusion: The repudiation was unjustified, and interest at 9% per annum was payable on the claim amount until realization.

Final Conclusion: The order of the National Commission was set aside, the insured's claim was restored, and the insurer was directed to pay the claim amount with interest within the stipulated time.

---