Case Note & Summary
The National Insurance Company Ltd. appealed against a Tribunal award granting compensation of Rs.4,24,505/- with 9% interest to the claimants for the death of The deceased in a motor accident. The accident occurred on 01.08.2014 when an unknown vehicle dashed against the deceased's motorcycle. The Insurance Company argued that the claim under Section 163-A of the Motor Vehicles Act, 1988 was not maintainable due to procedural lapses and policy violation as the deceased did not have a valid driving licence. The High Court examined the evidence, including the police complaint and witness testimonies, and found that the Insurance Company failed to prove the alleged policy violation. The Court upheld the Tribunal's decision, emphasizing that the burden of proof for such violations lies with the insurer. The appeal was partly allowed and award modified
Headnote
Motor Vehicles Act, 1988-- Sections 163-A and 173 -- Fatal accident-- Claim for compensation filed u/s 163-A of MV Act-- Award of compensation -- Aggrieved-- Challenged by Insurance company in an appeal before High Court-- Liability of insurance company u/s 163-A of MV Act-- Case of Ramkhiladi and Anr (Supra) referred-- Deceased was himself riding the motorcycle at the time of accident-- Deceased was not a third party and he had borrowed the motorcycle thereby he stepped into the shoes of the owner of bike-- Deceased must be third party as Section 163-A is based on the principles of No-fault liability-- Deceased must be necessarily be a third party vis-a-vis the insured vehicle-- Deceased was not a third party as he was driving the vehicle as a borrower, However claimants were entitled to personal accidental coverage to the extent in the policy-- Absence of any enhanced coverage is Rs 1,00,000/--- Compensation beyond the contractual personal accident cover is not maintainable-- Claimants were only entitled to a sum of Rs 1,00,000/- as a personal accidental compensation with 7.5% interest-- Award modified-- Amount of compensation reduced-- Appeal Partly allowed Para-- 12, 16, 17, 18
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Issue of Consideration: The Issue of Consideration was whether the Insurance Company could be held liable for compensation under Section 163-A of the Motor Vehicles Act, 1988 despite allegations of policy violation and lack of valid driving licence by the deceased
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Final Decision
The High Court dismissed the appeal and upheld the Tribunal's award of Rs.4,24,505/- with 9% interest per annum, fastening liability on the Insurance Company
