Case Note & Summary
The present appeal was filed by the insurance company, Royal Sundaram Alliance Insurance Co. Ltd., challenging the judgment and award dated 31.03.2015 passed by the Motor Accident Claims Tribunal, Aurangabad in M.A.C.P No.518/2011. The Tribunal had allowed the petition filed by the respondent No.1, Chandrakala Ashok Kadam, under Section 163-A of the Motor Vehicles Act, 1988, claiming compensation for the death of her son Prashant @ Gajanan Ashok Kadam in a motor vehicle accident. The accident occurred on 20.12.2010 at about 4.00 a.m. when Prashant was driving a car bearing No.MH 20/BT-5515 belonging to his father, Ashok Tulshiram Kadam (respondent No.2). Due to bright lights from an opposite vehicle, Prashant lost control and the car hit a rock, resulting in his death on the spot. The claimant, being the mother, sought compensation of Rs.4,00,000/-. The insurance company contested the petition on the grounds that the deceased was not a third party as he was the son of the owner, and he was driving without a valid driving licence, which was a breach of policy conditions. The Tribunal, however, allowed the petition. The High Court, in appeal, examined the issue of whether the deceased could be considered a third party and whether the insurance company was liable. The Court held that the deceased, being the son of the owner, was not a third party and that driving without a valid licence constituted a breach of policy conditions. Consequently, the insurance company was not liable to pay compensation. The appeal was allowed, and the impugned judgment and award were set aside.
Headnote
A) Motor Accident Claims - Section 163-A Motor Vehicles Act, 1988 - Third Party Claim - Deceased was son of owner of vehicle and was driving without valid driving licence - Held that the deceased cannot be considered a 'third party' and the insurance company is not liable to pay compensation as there was breach of policy conditions (Paras 1-10).
Issue of Consideration
Whether the claimant, mother of the deceased, is entitled to compensation under Section 163-A of the Motor Vehicles Act, 1988 when the deceased was the son of the owner of the vehicle and was driving without a valid driving licence?
Final Decision
The appeal is allowed. The impugned judgment and award dated 31.03.2015 passed by the Motor Accident Claims Tribunal, Aurangabad in M.A.C.P No.518/2011 is set aside. The claim petition stands dismissed.
Law Points
- Section 163-A Motor Vehicles Act
- 1988
- Third party claim
- Owner's son driving without licence
- Breach of policy conditions
- Maintainability of petition under Section 163-A
Case Details
2019 LawText (BOM) (11) 6
First Appeal No.1199 of 2016
Mr. A.S. Deshpande for appellant, Mr. S.S. Chapalgaonkar holding for Mr. S.G. Chapalgaonkar for respondent No.1
Royal Sundaram Alliance Insurance Co. Ltd.
Chandrakala Ashok Kadam and Ashoka Tours and Travels
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Appeal against judgment and award in Motor Accident Claim Petition under Section 163-A of Motor Vehicles Act, 1988.
Remedy Sought
Insurance company sought to set aside the award granting compensation to the claimant.
Filing Reason
Insurance company challenged the award on grounds that deceased was not a third party and was driving without valid licence.
Previous Decisions
Motor Accident Claims Tribunal, Aurangabad allowed the claim petition on 31.03.2015.
Issues
Whether the deceased, being the son of the owner of the vehicle, can be considered a 'third party' for the purpose of claiming compensation under Section 163-A of the Motor Vehicles Act, 1988?
Whether the insurance company is liable to pay compensation when the deceased was driving without a valid driving licence?
Submissions/Arguments
Appellant (Insurance Company): The deceased was not a third party as he was the son of the owner; he was driving without a valid driving licence, which is a breach of policy conditions; hence, the insurance company is not liable.
Respondent No.1 (Claimant): The deceased was a third party and the insurance company is liable to pay compensation under Section 163-A.
Ratio Decidendi
Under Section 163-A of the Motor Vehicles Act, 1988, a claim for compensation can be made only by a third party. The deceased, being the son of the owner of the vehicle, is not a third party. Additionally, driving without a valid driving licence constitutes a breach of policy conditions, absolving the insurance company of liability.
Judgment Excerpts
Present appeal has been filed by original respondent No.2-the insurance company challenging the Judgment and Award passed in M.A.C.P No.518/2011 by learned Chairman, Motor Accident Claims Tribunal, Aurangabad dated 31.03.2015, thereby the petition under Section 163-A of the Motor Vehicles Act, 1988 filed by the present respondent No.1 came to be allowed.
Prashant is the son of owner of the car and therefore, he cannot termed as 'third party' and therefore, insurance company is not liable to pay compensation.
Procedural History
The claimant filed M.A.C.P No.518/2011 under Section 163-A of the Motor Vehicles Act, 1988 before the Motor Accident Claims Tribunal, Aurangabad. The Tribunal allowed the petition on 31.03.2015. The insurance company filed the present appeal before the High Court of Judicature at Bombay, Bench at Aurangabad, which was reserved on 09.09.2019 and pronounced on 18.11.2019.
Acts & Sections
- Motor Vehicles Act, 1988: 163-A
