Case Note & Summary
The appeal was filed by The New India Assurance Company Limited against the judgment and award dated 01-09-2004 passed by the Motor Accidents Claims Tribunal, Amravati in MACP No. 11 of 2003, whereby the Tribunal partly allowed the claim in the sum of Rs 3,82,000 inclusive of no fault liability with interest at 9% per annum from the date of petition till realization. The facts are that on 15-08-2002, Abdul Rauf, aged about 35 years, was a fare-paying passenger in a Mahindra Savari bearing No. MH27C/5192 owned by Akil Khan Gaffar Khan and insured with the appellant. The vehicle was driven rashly and negligently by Abdul Salim; due to a burst tyre, the vehicle dashed against a tree. Abdul Salim died on the spot, while Abdul Rauf was admitted to Irwin Hospital, Achalpur, then shifted to Medical Hospital, Nagpur, where he underwent treatment for 17 days, was discharged on 03-09-2002, and died on 02-11-2002. He was a cattle trader earning about Rs 4,000 per month. The claimants, being his widow, children, and parents, sought compensation of Rs 5,00,000. The insurer defended on the ground that the driver was not rash and negligent, and that the vehicle was overloaded with 15-16 passengers beyond its capacity of six, contrary to the insurance policy and permit, thus denying liability. The court heard submissions: the appellant argued breach of policy conditions and that liability was limited to five persons; the claimants contended no evidence of breach and that the insurer is liable. The court held that the insurer failed to prove that the owner allowed overloading or that the breach was with the owner's knowledge. The burden of proving breach of policy conditions lies on the insurer. The court found no reason to interfere with the Tribunal's award and dismissed the appeal with no order as to costs.
Headnote
A) Motor Accident Claims - Insurer Liability - Breach of Policy Conditions - Overloading - The insurer contended that the vehicle was overloaded with 15-16 passengers against a capacity of six, constituting breach of policy and permit. The court held that the insurer failed to prove that the owner allowed the overloading or that the breach was committed with the owner's knowledge or connivance. The burden of proving breach of policy conditions lies on the insurer. (Paras 3-4) B) Motor Accident Claims - Compensation - Quantum - The Tribunal awarded Rs 3,82,000 with 9% interest. The court upheld the award, noting that the deceased was a cattle trader earning Rs 4,000 per month, and the claimants were dependents. No interference was warranted. (Paras 1, 5)
Issue of Consideration
Whether the insurer is liable to pay compensation when the vehicle was overloaded beyond the permitted capacity, and whether the insurer proved breach of policy conditions by the owner.
Final Decision
Appeal dismissed. The judgment and award of the Tribunal dated 01-09-2004 in MACP No. 11 of 2003 is confirmed. No order as to costs.
Law Points
- Motor accident compensation
- insurer liability
- breach of policy conditions
- overloading of vehicle
- burden of proof on insurer
