Case Note & Summary
The present appeal was filed by the United India Insurance Company Ltd. against the judgment and award passed by the Motor Accident Claims Tribunal, Beed, on 26th February 2010, in Motor Accident Claim Petition No. 18/2007. The claim petition was filed by the respondents (legal heirs of deceased Pralhad Nevade) seeking compensation on account of the death of Pralhad Nevade in a vehicular accident that occurred on 29.8.2006. At the relevant time, the deceased was travelling by an auto rickshaw bearing registration No. MH-23-C-1735. The said rickshaw turned turtle and the deceased was thrown out, ultimately suffering death. The auto rickshaw involved in the accident was owned by Pralhad Nevade i.e. the deceased. Respondent no.4 in the present appeal, who was respondent no.1 in the claim petition before the Tribunal, was driving the rickshaw at the relevant time. A crime for offenses under Sections 279, 337 and 304-A of the Indian Penal Code was registered against him for negligently driving the auto rickshaw and thereby causing the accident. The legal heirs of deceased Pralhad filed the claim petition against the driver and the appellant Insurance Company seeking compensation. The Tribunal awarded compensation of Rs. 3,50,000/- with interest at 7.5% per annum from the date of petition till realization, directing the Insurance Company to pay the same. The Insurance Company appealed, contending that the deceased being the owner of the vehicle, his legal heirs cannot claim compensation from the Insurance Company as the policy covers only third party risks. The court allowed the appeal, setting aside the award against the Insurance Company, holding that the deceased was the owner and insured, and cannot be treated as a third party. The court directed the claimants to recover the compensation from the driver of the vehicle.
Headnote
A) Motor Accident Claims - Third Party Claim - Owner as Claimant - The legal heirs of the deceased owner of the vehicle involved in the accident cannot claim compensation from the insurance company under the policy covering the vehicle, as the deceased was the owner and insured, not a third party. The court held that the insurance policy covers liability towards third parties only, and the owner cannot be treated as a third party. (Paras 1-10) B) Motor Vehicles Act, 1988 - Section 147 - Insurance Policy - Liability - The insurance policy under Section 147 of the Motor Vehicles Act, 1988 covers liability for death or bodily injury to a third party, but not to the owner of the vehicle. The court held that the deceased being the owner of the auto rickshaw, his legal heirs cannot claim compensation from the insurance company. (Paras 1-10)
Issue of Consideration
Whether the legal heirs of the deceased owner of the vehicle involved in the accident are entitled to claim compensation from the insurance company under the policy covering the vehicle, when the deceased was the owner and insured himself.
Final Decision
The appeal is allowed. The judgment and award passed by the Motor Accident Claims Tribunal, Beed, on 26th February 2010, in Motor Accident Claim Petition No. 18/2007, is set aside insofar as it directs the appellant Insurance Company to pay compensation. The claimants are at liberty to recover the compensation from the driver of the vehicle (respondent no.4). No order as to costs.
Law Points
- Owner of vehicle cannot claim compensation as third party under own insurance policy
- Insurance company not liable to indemnify owner-claimant
- Section 147 of Motor Vehicles Act
- 1988
