Case Note & Summary
The case arises from a motor accident claim petition filed by Baban Narayan Bansod (claimant) before the Motor Accident Claims Tribunal, Nagpur. On 19.12.2010, the claimant had gone to village Gondkhairi with respondent no. 3 (Tulsiram Narnaware) in the evening. On their return journey, respondent no. 3 was driving a scooter owned by respondent no. 2 (Sriram Chits (P) Limited) and insured with the appellant (New India Assurance Company Limited). The claimant and his son-in-law were pillion riders. Near TCI Godown at Wadi, the scooter dashed against a stone on the road, causing all to fall. The claimant sustained severe head injuries and lost eyesight. He claimed compensation of Rs. 1.50 lakhs. The Insurance Company resisted the claim on grounds that the driver (respondent no. 3) was under the influence of liquor and did not hold a valid driving licence. The owner and driver also resisted, alleging that the vehicle was used after office hours and the driver was drunk. The Tribunal partly allowed the claim, awarding Rs. 80,000 with 9% interest against the insurer and owner jointly. The Insurance Company appealed. The High Court heard arguments and dismissed the appeal, holding that the insurer failed to prove breach of policy conditions. The court noted that the owner did not appeal, and the insurer's defences were not substantiated. The award was upheld.
Headnote
A) Motor Accident Claims - Liability of Insurer - Breach of Policy Conditions - The Insurance Company sought to avoid liability on grounds that the driver was drunk and had no valid licence. The Tribunal held the insurer jointly liable with the owner. The High Court upheld the award, observing that the insurer failed to prove breach of policy conditions. (Paras 1-8)
Issue of Consideration
Whether the Insurance Company is liable to pay compensation to the claimant when the driver of the insured vehicle was allegedly under the influence of liquor and did not hold a valid driving licence at the time of the accident.
Final Decision
The High Court dismissed the appeal and upheld the award of the Motor Accident Claims Tribunal, Nagpur, dated 14th January 2003 in Claim Petition No. 813 of 2001, directing the appellant Insurance Company and respondent no. 2 to pay compensation of Rs. 80,000 with interest at 9% per annum from the date of petition till realization.
Law Points
- Motor Accident Claims
- Liability of Insurer
- Breach of Policy Conditions
- Burden of Proof
- Contributory Negligence
- Quantum of Compensation
Case Details
2013 LawText (BOM) (07) 178
First Appeal No. 224 of 2003
Mr A. J. Pophaly for appellant, Mr S. K. Sable for respondent no. 1
The New India Assurance Company Limited
Baban son of Narayan Bansod, Sriram Chits (P) Limited, Tulsiram @ Ram s/o Ramaji Narnaware
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Nature of Litigation
Appeal against award of Motor Accident Claims Tribunal in a claim petition for compensation for injuries sustained in a road accident.
Remedy Sought
The appellant Insurance Company sought to set aside the Tribunal's award directing it to pay compensation to the claimant.
Filing Reason
The Insurance Company contended that the driver was under the influence of liquor and did not hold a valid driving licence, thus it was not liable to pay compensation.
Previous Decisions
The Motor Accident Claims Tribunal, Nagpur, in Claim Petition No. 813 of 2001, partly allowed the claim and awarded Rs. 80,000 with interest at 9% per annum from the date of petition till realization, directing the Insurance Company and the owner to pay jointly.
Issues
Whether the Insurance Company is liable to pay compensation when the driver was allegedly drunk and had no valid driving licence?
Whether the Tribunal's award of Rs. 80,000 with interest is sustainable?
Submissions/Arguments
Appellant Insurance Company argued that the driver (respondent no. 3) was under the influence of liquor and did not hold a valid driving licence, hence the insurer is not liable.
Respondent no. 1 (claimant) supported the Tribunal's award and contended that the insurer failed to prove breach of policy conditions.
Ratio Decidendi
The Insurance Company failed to prove breach of policy conditions. The owner did not appeal, and the insurer's defences regarding drunken driving and lack of valid licence were not substantiated. Hence, the insurer is jointly liable with the owner to pay compensation to the injured claimant.
Judgment Excerpts
Appellant Insurance Company has impugned in this appeal judgment and award dated 14th January 2003 passed by the Motor Accident Claims Tribunal, Nagpur in Claim Petition No. 813 of 2001 directing present appellant and respondent no. 2 Sriram Chits (P) Limited to pay compensation of in the sum of Rs. 80,000/ to original claimant (present respondent no.1) with interest @ 9% per annum from the date of petition till realization.
Procedural History
The claimant filed Claim Petition No. 813 of 2001 before the Motor Accident Claims Tribunal, Nagpur. The Tribunal partly allowed the claim on 14th January 2003. The Insurance Company appealed to the High Court of Bombay, Nagpur Bench, which dismissed the appeal on 1st July 2013.
Acts & Sections
- Motor Vehicles Act, 1988:
