Insurance Company Can’t Escape Liability on Technicality: P&H HC Upholds ₹10 Lakh Award Despite Theft vs Robbery Dispute

Case Name: M/s Oriental Insurance Co. Ltd. & Anr. v. Ajit Singh & Anr.

Date of Judgment: 20 March 2026

Citation: CWP-5258-2026

Bench: Hon’ble Mr. Justice Jagmohan Bansal

Held: The High Court held that once loss of the insured vehicle is undisputed, the insurance company cannot deny compensation merely on the technical distinction between “theft” and “robbery.” The writ petition was dismissed, and the award of ₹10 lakhs with interest was upheld.

Summary: The petitioners, an insurance company, challenged an award passed by the Permanent Lok Adalat, Faridabad directing payment of ₹10 lakhs with interest to the respondent for loss of an insured truck. The vehicle, insured with the petitioner, was allegedly snatched by miscreants in May 2015, and an FIR was subsequently registered under Section 379 IPC.

The insurance company repudiated the claim on the sole ground that there was inconsistency between the FIR (which recorded theft) and the insurance claim (which described robbery). The respondent approached the Permanent Lok Adalat under Section 22C of the Legal Services Authorities Act, 1987, which allowed the claim and granted compensation.

The Lok Adalat found that the vehicle was admittedly insured and had been lost, and the distinction between theft and robbery was immaterial in determining liability. It also noted that any discrepancy in the FIR could not be attributed to the claimant, as the police may have altered the nature of the offence.

Before the High Court, the insurer reiterated its stand based on the discrepancy. However, the Court observed that there was no dispute regarding insurance or the loss of the vehicle. It further noted that the insurer failed to produce any evidence to show that the vehicle was not lost.

Decision: The High Court found no legal or factual infirmity in the award passed by the Permanent Lok Adalat and dismissed the writ petition. The direction to pay ₹10 lakhs along with interest at 7% from the date of application was upheld.