A car dealer insured its vehicles in a "trade insurance"- an insurance policy designed to allow coverage for those involved in the trade of vehicles, garages, car inspection or test institutes and in the case at hand the policy allowed driving only to those who are explicitly indicated in the policy and those driving with the permission of the car trader and is accompanied by one of the above. An employee of the car trader did not drive the car but drove another car alongside it when an accident took place and the insurance company denied coverage.
The Court held that a trade insurance is linked to the driver and not linked to the vehicle and its purpose is to enable driving of the vehicles in the business inventory for the purpose of the business and as part of the business and not for private uses, unless specifically otherwise stated in the policy. Therefore, the policy will apply in the case of a person driving a car with the trader's approval only if a person authorized to drive under the policy is physically in the vehicle.