Inder had purchased a bus by taking a hire-purchase loan from Swami Financiers. The bus was used as a private service vehicle and not as a public transport. It was insured under a comprehensive motor policy issued by Sun

No, the action taken by the Company is not justified for the following reasons: Firstly, if a person has a licence to drive a heavy goods carriage vehicle, it also means that he/she was entitled to drive a transport vehicle, including a public service vehicle, hence repudiation of the claim on this ground or reason is not tenable. Secondly, the company is also not right in making a part payment of the amount of loss. The Commission should direct the insurance company to pay the balance amount and the Consumer Forum may decide such interest & costs. Thirdly, the practice adopted by insurance companies of directly paying to the financier, without informing the insured or without his consent, cannot be justified. If the insurance Policy is taken in the name of the vehicle purchaser, there is no question of paying the amount straightaway to the financier.