Case Note & Summary
The case arises from a motor accident claim petition filed by the legal representatives of deceased Wamanrao, who died in a road accident on 18 April 1994 when a matador (MH15B897) driven by respondent no.6 hit him from behind while he was walking on Viregaon-Ramnagar road. The claimants sought compensation of Rs.1,00,000. The Motor Accident Claims Tribunal, Jalna, allowed the petition and directed the opponents (owner-driver and insurer) to pay the awarded amount with costs and interest. The insurance company, New India Assurance Co. Ltd., appealed against the award, raising two grounds: first, that no valid insurance policy existed on the date of the accident; second, that the owner and driver breached policy conditions by carrying passengers in a goods vehicle, thus exonerating the insurer. The High Court examined the record and found that the insurance company had not raised these defences in its written statement before the Tribunal. The certificate of insurance showed no indication of invalidity, and no evidence was led to prove breach of conditions. The court held that the insurer cannot be allowed to raise new grounds for the first time in appeal without having pleaded or proved them at the trial. Consequently, the appeal was dismissed, and the award of the Tribunal was upheld.
Headnote
A) Motor Accident Claims - Insurance Policy - Validity - Burden of Proof - The insurer contended that no valid policy existed on the date of accident, but failed to raise this defence before the Tribunal or produce evidence to prove invalidity - Held that the insurer cannot be allowed to raise such a ground for the first time in appeal without supporting evidence (Paras 6-8). B) Motor Accident Claims - Breach of Policy Conditions - Carrying Passengers in Goods Vehicle - The insurer alleged that the vehicle was a goods vehicle and passengers were carried, constituting breach - However, no such defence was pleaded before the Tribunal and no evidence was led - Held that the insurer cannot be exonerated on this ground in appeal (Paras 6-8). C) Motor Accident Claims - Appeal - New Defences - The insurance company sought to raise new grounds in appeal that were not part of its written statement or defence before the Tribunal - Held that such grounds cannot be entertained for the first time in appeal, especially without any evidence on record (Paras 7-8).
Issue of Consideration
Whether the insurance company can be exonerated from liability on grounds that no valid policy existed and that there was breach of policy conditions by carrying passengers in a goods vehicle, when such defences were not raised before the Tribunal.
Final Decision
Appeal dismissed. Judgment and award of Motor Accident Claims Tribunal, Jalna, dated 8 December 1995 in MACP No.23 of 1994 is confirmed.
Law Points
- Burden of proof on insurer to establish breach of policy conditions
- Insurance company cannot raise new defences on appeal not pleaded before Tribunal
- Validity of insurance policy presumed unless challenged at trial
