Case Note & Summary
The present appeal was filed by the United India Insurance Co. Ltd. against the judgment and award dated 31.01.2022 passed by the Motor Accident Claims Tribunal, Ahmedabad (Mirzapur) in MACP No.370 of 2017. The brief facts are that on 12.12.2016, the deceased was travelling as a cleaner in a Bolero Pickup vehicle. When the vehicle reached the place of accident, the driver drove it in a rash and negligent manner, causing the vehicle to turn turtle. The deceased sustained fatal injuries and succumbed to them. The claimants, being the legal heirs of the deceased, filed a claim petition before the Tribunal seeking compensation. The Tribunal awarded compensation in favour of the claimants. The insurance company challenged the award on the grounds that the driver did not hold a valid driving licence at the time of the accident and that the deceased was an unauthorized passenger in a goods vehicle, whose risk was not covered under the insurance policy. The learned advocate for the appellant submitted that the insurance company should be exonerated from liability. The learned advocate for the respondents opposed the appeal, submitting that the Tribunal had rightly awarded just and proper compensation. The court considered the submissions and the evidence on record. The court noted that the deceased was a cleaner in the goods vehicle and that the driver did not have a valid licence. However, following the principle of pay and recovery, the court held that the insurance company is liable to pay the compensation to the claimants and then recover the same from the owner and driver of the offending vehicle. The court dismissed the appeal and upheld the Tribunal's award, directing the insurance company to pay the awarded amount with interest and recover it from the insured.
Headnote
A) Motor Accident Claims - Insurance Liability - Pay and Recovery - Driver without valid licence and deceased as unauthorized passenger in goods vehicle - Insurance company held liable to pay compensation to claimants with right to recover from owner/driver - Held that insurer must pay award and then recover from insured (Paras 6-8).
Issue of Consideration
Whether the insurance company is liable to pay compensation when the driver did not hold a valid driving licence and the deceased was an unauthorized passenger in a goods vehicle?
Final Decision
The appeal is dismissed. The insurance company is directed to pay the awarded amount with interest to the claimants and recover the same from the owner and driver of the offending vehicle in accordance with law.
Law Points
- Motor Accident Claims
- Insurance Liability
- Pay and Recovery
- Unauthorized Passenger
- Driving Licence
- Goods Vehicle
- Cleaner
