Case Note & Summary
The judgment arises from two first appeals filed by the United India Insurance Company Limited against the awards passed by the Motor Accident Claims Tribunal in M.A.C.P. No.7/2001 and M.A.C.P. No.8/2001. Both claims arose from the same accident that occurred on 26.8.2000 involving a Matador bearing registration MH 30/A 9238. In M.A.C.P. No.7/2001, the widow, minor children, and mother of the deceased claimed compensation of Rs.3,50,000/-. In M.A.C.P. No.8/2001, the parents of another deceased claimed compensation of Rs.2,70,000/-. The Tribunal held that the accident occurred due to the rash and negligent driving of the offending vehicle and awarded compensation of Rs.1,97,000/- in M.A.C.P. No.7/2001 and Rs.84,200/- in M.A.C.P. No.8/2001. The insurer appealed on the ground that there was a breach of the terms of the insurance policy, as the matador was a goods carriage vehicle and the deceased were not covered under the policy. The court considered the evidence in M.A.C.P. No.7/2001, where it was stated that the deceased was working as a labourer and had gone to load bananas in the ill-fated vehicle. The court held that the deceased were third parties and the accident was due to rash and negligent driving, not due to any breach of policy terms. The appeals were dismissed, and the awards were upheld.
Headnote
A) Motor Accident Claims - Goods Carriage Vehicle - Liability of Insurer - Deceased were labourers loading bananas in a goods carriage matador - Held that the insurer is liable to pay compensation as the deceased were third parties and the accident occurred due to rash and negligent driving, not due to any breach of policy terms (Paras 1-4).
Issue of Consideration
Whether the insurer is liable to pay compensation when the deceased were travelling in a goods carriage vehicle as labourers loading goods, and whether there was a breach of insurance policy terms.
Final Decision
Both appeals are dismissed. The judgments and awards dated 1.2.2003 passed in M.A.C.P. No.8/2001 and M.A.C.P. No.7/2001 are upheld.
Law Points
- Motor Accident Claims
- Goods Carriage Vehicle
- Insurance Policy Breach
- Liability of Insurer
- Third Party Risk
Case Details
2012 LawText (BOM) (10) 149
First Appeal No.305/2003 and First Appeal No.318/2003
Mr. S.N. Dhanagare for appellant, Mr. Bharat Vora for respondent no.1 & 2
United India Insurance Company Limited
Sou Meharunisa Sk. Mehboob and others (in FA 305/2003); Sau. Safiyabi wd/o Isaf Shah and others (in FA 318/2003)
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Nature of Litigation
Appeals against awards of Motor Accident Claims Tribunal in two claim petitions arising from same accident.
Remedy Sought
Insurer sought to set aside the awards on ground of breach of insurance policy terms.
Filing Reason
Insurer contended that the deceased were not covered under the insurance policy as the vehicle was a goods carriage.
Previous Decisions
Tribunal awarded compensation of Rs.1,97,000/- in M.A.C.P. No.7/2001 and Rs.84,200/- in M.A.C.P. No.8/2001.
Issues
Whether the insurer is liable to pay compensation when the deceased were travelling in a goods carriage vehicle as labourers loading goods.
Whether there was a breach of insurance policy terms.
Submissions/Arguments
Appellant argued that the matador was a goods carriage vehicle and the deceased were not covered under the insurance policy.
Respondents argued that the deceased were labourers loading goods and were third parties.
Ratio Decidendi
The insurer is liable to pay compensation for death of labourers loading goods in a goods carriage vehicle as they are third parties and the accident was due to rash and negligent driving, not due to any breach of policy terms.
Judgment Excerpts
Both these appeals arise out of the judgments and awards dated 1.2.2003 passed in M.A.C.P. No.8/2001 and M.A.C.P. 7/2001, however, arising out of same accident occurred on 26.8.2000 involving the Matador MH 30/A 9238.
In Claim Petition No.7/2001 evidence was given to the effect that the deceased was working as a labourer and on the day of incident, he had gone to load bananas in the ill-fated vehicle.
Procedural History
The Motor Accident Claims Tribunal passed awards on 1.2.2003 in M.A.C.P. No.8/2001 and M.A.C.P. No.7/2001. The insurer filed First Appeal No.305/2003 and First Appeal No.318/2003 before the Bombay High Court, Nagpur Bench, which were heard together and dismissed on 1.10.2012.
Acts & Sections
- Motor Vehicles Act, 1988:
