Case Note & Summary
The case involves a first appeal filed by the National Insurance Co Ltd against the judgment and award dated 18.01.2012 passed by the Motor Accident Claims Tribunal (Aux), Kheda at Nadiad in Motor Accident Claim Petition No.2399 of 2003. The Tribunal had partly allowed the claim petition and awarded Rs.8,98,500/- as compensation with interest at 7.5% per annum from the date of filing of the claim petition till realization. The accident occurred on 04.06.2003 when the claimant was returning from Ambaji Temple to Khedbrahma in a jeep bearing registration No.GJ-8-A-8960. The driver of the jeep drove at high speed in a rash and negligent manner on the wrong side of the road, colliding with a Matador bearing registration No.GJ-3-V-5711. The claimant sustained several injuries including fractures and filed a claim petition seeking Rs.15,00,000/-. The Insurance Company argued that the vehicle was used for hire and purchase, thus not covered under the policy, and that no premium of Rs.153/- was charged to cover the claimant's risk. The Tribunal, however, found that the Insurance Company had charged Rs.153/- as premium to cover the risk of the claimant. The High Court, after considering the submissions, held that the Insurance Company failed to prove that the vehicle was used for hire and purchase. The court noted that the policy did not reflect the sum of Rs.153/- but the Tribunal's finding was based on evidence. The court dismissed the appeal, upholding the Tribunal's award. The decision reinforces the principle that the burden of proving breach of policy conditions lies on the Insurance Company.
Headnote
A) Motor Accident Claims - Insurance Policy - Breach of Policy Conditions - The Insurance Company contended that the vehicle was used for hire and purchase, which was not covered under the policy. However, the Tribunal found that a premium of Rs.153/- was charged to cover the risk of the claimant. The High Court upheld the Tribunal's finding, noting that the Insurance Company failed to prove that the vehicle was used for hire and purchase. (Paras 1-5)
Issue of Consideration
Whether the Insurance Company is liable to pay compensation when the vehicle was allegedly used for hire and purchase, and whether the premium of Rs.153/- was charged to cover the risk of the claimant.
Final Decision
The High Court dismissed the appeal, upholding the judgment and award of the Motor Accident Claims Tribunal (Aux), Kheda at Nadiad dated 18.01.2012 in Motor Accident Claim Petition No.2399 of 2003.
Law Points
- Motor Accident Claims
- Insurance Policy
- Breach of Policy Conditions
- Premium for Risk Coverage
- Liability of Insurance Company
