Case Note & Summary
The case arises from a motor accident that occurred on 15th May 2010, when Sakharam Gaikwad was riding a motorcycle with deceased Ganesh as a pillion rider. The respondent No.1 drove his rickshaw in a rash and negligent manner, dashing into the motorcycle, causing Ganesh to sustain head injuries and die while undergoing treatment. The claimants, being the wife and mother of the deceased, filed a claim petition before the Motor Accident Claims Tribunal, Pune, which awarded compensation. The appellant Insurance Company challenged the award, contending that the rickshaw was driven outside its permitted area (Thane district) and that the claimant-wife had remarried, thus disentitling her to compensation. The court held that under Section 149 of the Motor Vehicles Act, 1988, the insurer is liable to pay compensation to third party victims even if there is a breach of permit conditions, as the policy covers third party risks. Regarding remarriage, the court held that the claim for loss of dependency is based on the loss of income of the deceased, and remarriage does not affect the right to claim compensation. The appeal was dismissed, and the compensation awarded by the Tribunal was upheld.
Headnote
A) Motor Accident Claims - Permit Violation - Liability of Insurer - Section 149 Motor Vehicles Act, 1988 - Insurance company cannot avoid liability to third party on ground that vehicle was driven outside permit area - Held that insurer is liable to pay compensation to third party victims even if there is breach of permit conditions, as the policy covers third party risks (Paras 3-5). B) Motor Accident Claims - Remarriage of Widow - Loss of Dependency - Section 166 Motor Vehicles Act, 1988 - Remarriage of claimant-widow does not extinguish her right to claim compensation for loss of dependency - Held that the claim for loss of dependency is based on the loss of income of the deceased, and remarriage does not affect the right to claim compensation (Para 5).
Issue of Consideration
Whether the Insurance Company is liable to pay compensation when the offending vehicle was driven outside the permit area, and whether the remarriage of the claimant-widow disentitles her from claiming compensation.
Final Decision
Appeal dismissed. The judgment and order of the Motor Accident Claims Tribunal, Pune is upheld. The Insurance Company is liable to pay compensation to the claimants.
Law Points
- Insurance company liable for third party claims despite permit violation
- remarriage of widow does not bar claim for loss of dependency
- Motor Vehicles Act
- 1988
