No Separate National Permit Authorization Is Required for Intra-State Vehicle Operation.

The claimant sustained injuries in a motor accident on 2 December 2021.

The Motor Accident Claims Tribunal, Katghora, awarded him ₹4,49,000 and fastened liability on the Insurance Company.

The Company appealed under Section 173 of the Motor Vehicles Act, 1988, contending that the vehicle’s National Permit was not validly renewed or authorized for the relevant period.

The vehicle was registered at Raipur, and the accident occurred in Chhattisgarh.

1. Whether the alleged absence of a valid permit authorization for the vehicle’s operation in Chhattisgarh constituted a breach of the insurance policy absolving the Insurance Company of liability.

2. Whether the Tribunal’s decision to fasten liability on the Insurance Company warranted interference in appeal.

The appeal was brought under Section 173 of the Motor Vehicles Act, 1988.

Relying on Shri Binod Kumar Singh v. National Insurance Company Ltd., SLP (Civil) No. 13060 of 2020, the Court applied the principle that authorization fees for a National Permit are required when a vehicle travels outside the State in which the permit was issued; separate authorization is not required for use within that State.

The Court treated the relevant objection as one concerning the absence of permit authorization.

It found that the vehicle was registered with the Raipur Transport Authority, was being operated in Chhattisgarh, and met with the accident there.

Applying Shri Binod Kumar Singh, the Court held that separate authorization was not required for the vehicle’s operation within the State.

Accordingly, the alleged absence of authorization did not establish a policy breach that would relieve the Insurance Company of liability.

The Court dismissed the appeal as devoid of merit.