IFFCO TOKIO GENERAL INSURANCE COMPANY LTD. versus PEARL BEVERAGES LTD.

IFFCO TOKIO GENERAL INSURANCE COMPANY LTD. versus PEARL BEVERAGES LTD.

For an insurer to invoke an insurance exclusion for loss occurring while the vehicle was driven by a person "under the influence of intoxicating liquor," it must prove on the facts that the driver was under the influence so that alcohol contributed perceptibly to the accident; proof under Section 185 MV Act (BAC>30 mg/100ml by breathalyser/laboratory test) is one manner of proof but it is not indispensable in proceedings under the Consumer Protection Act, and absence of a breath or blood test does not automatically prevent the insurer from proving exclusion by other admissible evidence.

Parties
Appellant / Insurer: IFFCO TOKIO GENERAL INSURANCE COMPANY LTD.; Respondent / Insured: PEARL BEVERAGES LTD.
Jurisdiction
India
Judgment Date
12 April 2021
Procedural Posture
Civil Appeal / On Appeal From National Consumer Disputes Redressal Commission (ncdrc) Order
Outcome
Appeal allowed
Legal Topics
Drunken Driving, Exclusion Clause in Insurance Contract, Interpretation of "under the Influence of Intoxicating Liquor", Section 185 Motor Vehicles Act, 1988, Breathalyser and Laboratory Tests, Burden of Proof (evidence Act S.106), Res Ipsa Loquitur, Blood Alcohol Concentration (bac)
Insurance Motor Vehicles Consumer Protection Evidence Criminal Law Tort Drunken Driving Exclusion Clause in Insurance Contract +6 more

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Parties

IFFCO TOKIO GENERAL INSURANCE COMPANY LTD.

Appellant / Insurer

PEARL BEVERAGES LTD.

Respondent / Insured

Procedural Posture

Civil Appeal / On Appeal From National Consumer Disputes Redressal Commission (ncdrc) Order

Legal Issues

  1. 1 Whether insurer can invoke policy exclusion for own-damage when vehicle was driven by a person under influence of intoxicating liquor
  2. 2 Whether absence of breathalyser/blood test (Section 185 procedure) precludes insurer from proving exclusion under the policy
  3. 3 Proper interpretation of the phrase "under the influence of intoxicating liquor" in an insurance exclusion clause

Ratio Decidendi

For an insurer to invoke an insurance exclusion for loss occurring while the vehicle was driven by a person "under the influence of intoxicating liquor," it must prove on the facts that the driver was under the influence so that alcohol contributed perceptibly to the accident; proof under Section 185 MV Act (BAC>30 mg/100ml by breathalyser/laboratory test) is one manner of proof but it is not indispensable in proceedings under the Consumer Protection Act, and absence of a breath or blood test does not automatically prevent the insurer from proving exclusion by other admissible evidence.

Court Disposition

Appeal allowed

Orders

  • Impugned Order of the National Consumer Disputes Redressal Commission dated 21.08.2020 set aside
  • Appeal allowed