Supreme Court: Valid MVA Permit Extends Insurance Cover Abroad

The Supreme Court held that insurers cannot deny motor insurance claims for accidents occurring abroad where the vehicle is operating under a valid permit issued under the Motor Vehicles Act. The judgment clarifies that valid MVA permits automatically extend insurance coverage across borders, protecting policyholders from wrongful claim denials. The Court also urged the Insurance Regulatory and Development Authority of India (IRDAI) to standardise cross-border motor insurance policy clauses to prevent disputes and ensure clarity. This ruling affects insurance companies, vehicle operators engaging in international travel, and IRDAI's regulatory framework for motor insurance products. Insurers must revise policy language and claims processes to comply with this judgment; businesses operating vehicles internationally should verify their permits and insurance validity before cross-border operations.