Case Note & Summary
The appeal was filed by the United India Insurance Company Ltd. challenging the Judgment and Award dated 28.08.2017 passed by the Motor Accident Claims Tribunal, Latur in M.A.C.P. No.197/2012. The Tribunal had allowed the claim petition filed by the respondents No.1 to 3 (original claimants) who are the wife and sons of deceased Suryakant Pandurang Nikam. The deceased was travelling in a Tata Sumo jeep bearing No.MH 23/E3762 on 15.04.2015 after attending a marriage ceremony. The vehicle was driven rashly and negligently by respondent No.2 (driver-cum-owner), lost control, hit the railing of a bridge, and overturned. The deceased sustained serious injuries and succumbed after 17 days of hospitalization. The claimants sought compensation of Rs.7,50,000/-. The driver-cum-owner denied negligence, claiming that molasses on the road caused the skid. The insurance company contended breach of policy conditions as the vehicle was used for hire or reward without a valid permit. The Tribunal held that the accident occurred due to negligence of the driver and awarded compensation of Rs.7,50,000/- with interest at 9% per annum from the date of petition till realization. The Tribunal directed the insurance company to pay the amount and recover the same from the owner. The insurance company appealed, arguing that it should not be liable due to breach of policy conditions. The High Court upheld the Tribunal's order, holding that the insurance company is liable to pay compensation to third-party claimants and can recover the amount from the insured. The appeal was dismissed.
Headnote
A) Motor Accident Claims - Pay and Recover - Breach of Policy Conditions - The insurance company is liable to pay compensation to third-party claimants even if the insured violated policy conditions, but can recover the amount from the insured. The Tribunal's direction to pay and recover was upheld. (Paras 1-10) B) Motor Accident Claims - Negligence - Rash and Negligent Driving - The accident occurred due to rash and negligent driving of the offending vehicle, as the driver lost control and the vehicle skidded, hit a bridge railing, and overturned. The Tribunal's finding of negligence was affirmed. (Paras 2-3) C) Motor Accident Claims - Compensation - Quantum - The Tribunal awarded compensation of Rs.7,50,000/- to the claimants, which was not challenged by the insurance company on merits. The appeal was limited to the liability aspect. (Paras 1-2)
Issue of Consideration
Whether the insurance company is liable to pay compensation to third-party claimants despite breach of policy conditions by the insured, and whether the 'pay and recover' direction is valid.
Final Decision
The appeal is dismissed. The judgment and award of the Motor Accident Claims Tribunal, Latur dated 28.08.2017 is confirmed. The insurance company is directed to pay the compensation amount to the claimants and recover the same from the owner of the vehicle.
Law Points
- Motor Accident Claims
- Pay and Recover
- Breach of Policy Conditions
- Negligence
- Compensation
