No cover after expiry of vehicle registration

Since the firm did not pay registration fee on time, driving the car was construed as an illegal act

Classic Bakery had taken a loan from ICICI Bank to purchase a Fortuner car costing Rs 20.9 lakh. The vehicle, which had a temporary registration, was insured with Tata AIG under a policy valid from February 26, 2014, to February 25, 2015.

During the subsistence of the policy, the vehicle met with an accident on April 30, 2014. A claim was lodged, but the insurer repudiated it on the ground that the vehicle did not have valid registration on the date of the accident since the temporary registration had expired and permanent registration had not been obtained.

The insured filed a complaint