Case Note & Summary
The appeal arises from a judgment of the Motor Accident Claims Tribunal, Nagpur, dated 6th February 2020, which dismissed a claim petition filed by the legal representatives of Vijay Annaji Khandar. The deceased was the owner and driver of a Jeep insured with the National Insurance Company Limited. On 16th October 2004, while driving on Saoner-Nagpur Road, he swerved to avoid a head-on collision with a Tata Sumo and dashed his Jeep into a tree, succumbing to injuries. The claimants filed a petition under Section 163-A of the Motor Vehicles Act, 1988, seeking compensation under the personal accident cover of the insurance policy. The insurance company contested, arguing that the deceased being the owner-driver was not a third party and that the policy did not cover loss to the insured. The Tribunal upheld this objection, holding that the owner/insured cannot be considered a third party and exonerated the company. The High Court framed the issue of whether the Tribunal had jurisdiction to decide such a claim and the extent of the insurer's liability under the personal accident cover. The court noted that the existence of a valid insurance policy was undisputed and that the personal accident cover was a distinct contractual benefit. The court held that the Tribunal had jurisdiction under Section 163-A, which provides for no-fault liability, and that the claim was maintainable even though the deceased was the owner-driver. The court allowed the appeal, set aside the Tribunal's order, and directed the insurance company to pay compensation as per the personal accident cover, with interest.
Headnote
A) Motor Accident Claims - Jurisdiction - Section 163-A Motor Vehicles Act, 1988 - Claim by legal representatives of owner-driver - The Tribunal has jurisdiction to entertain a claim petition under Section 163-A even when the deceased is the owner-driver and no other vehicle is involved, as the claim is based on the personal accident cover in the insurance policy and not on third-party liability. (Paras 1-10) B) Insurance Law - Personal Accident Cover - Owner-driver - The insurance company is liable to pay compensation under the personal accident cover when the insured dies while driving the insured vehicle, as the cover is a contractual benefit independent of third-party claims. (Paras 11-15) C) Motor Vehicles Act - Section 163-A - No-fault liability - The principle of no-fault liability under Section 163-A applies to claims under the personal accident cover, and the Tribunal can adjudicate such claims. (Paras 5-10)
Issue of Consideration
Whether the Motor Accident Claims Tribunal has jurisdiction to entertain a claim petition under Section 163-A of the Motor Vehicles Act, 1988 when the deceased is the owner-driver of the insured vehicle and no other vehicle is involved, and whether the insurance company is liable under the personal accident cover in the policy.
Final Decision
Appeal allowed. The judgment of the Motor Accident Claims Tribunal dated 06/02/2020 is set aside. The insurance company is directed to pay compensation to the appellants as per the personal accident cover in the insurance policy, with interest at the rate of 6% per annum from the date of filing of the claim petition until realization.
Law Points
- Personal accident cover
- owner-driver
- third party
- Section 163-A Motor Vehicles Act
- 1988
- jurisdiction of MACT
- no-fault liability
