Case Note & Summary
The appeal was filed by the National Insurance Co. Ltd. challenging the judgment and award dated 06.01.2016 passed by the Senior Civil Judge, Gubbi, in MVC No.1086/2012, awarding compensation of Rs.6,45,000/- with interest at 8% p.a. to the claimants. The brief facts are that on 30.06.2012, claimant No.1 took a tractor trailer bearing registration No.KA-06-TA-9520-9521 to shift manure to his garden on hire basis. While loading manure, the driver drove the vehicle in a rash and negligent manner and dashed against Mallesh and Dodaiah, causing injuries to Mallesh. The claimants filed a claim petition. The Insurance Company contended that the vehicle was used in violation of permit conditions as carrying manure is not an agricultural operation. The court considered the issue of whether the Insurance Company is liable. The court held that the use of the vehicle for carrying manure is not an agricultural operation and thus the insurer is not liable. The appeal was allowed, setting aside the award of the Tribunal.
Headnote
A) Motor Vehicles Act - Insurance - Liability - Violation of Permit Conditions - Section 173(1) of Motor Vehicles Act, 1988 - The appeal was filed by the Insurance Company challenging the award of compensation on the ground that the tractor trailer was used for carrying manure, which is not an agricultural operation as per the permit, thereby violating the policy conditions. The court held that the use of the vehicle for carrying manure is not an agricultural operation and thus the insurer is not liable to pay compensation. (Paras 1-5) B) Motor Vehicles Act - Compensation - Interest - The Tribunal awarded compensation of Rs.6,45,000/- with interest at 8% p.a. The High Court set aside the award and allowed the appeal, holding that the Insurance Company is not liable. (Paras 1-5)
Issue of Consideration
Whether the Insurance Company is liable to pay compensation when the tractor trailer was used for carrying manure, which is not an agricultural operation as per the permit conditions?
Final Decision
The appeal is allowed. The judgment and award dated 06.01.2016 passed in MVC No.1086/2012 by the Senior Civil Judge, Gubbi, is set aside. The Insurance Company is not liable to pay compensation.
Law Points
- Liability of insurer
- violation of permit conditions
- use of vehicle for agricultural purpose
- Section 173(1) of Motor Vehicles Act
- 1988
