Case Note & Summary
The case involves an appeal by the United India Insurance Company against an award of the Motor Accidents Claims Tribunal at Aurangabad. The Tribunal had awarded Rs. 2,74,000 to the owner of a jeep (respondent no.1) as compensation for damage to his own vehicle, i.e., an 'own damage claim', under a comprehensive insurance policy. The Insurance Company challenged the award primarily on the ground that the Tribunal lacked jurisdiction to entertain such a claim, as it is not a claim for third-party injury or death but a contractual claim under the insurance policy. The respondent owner supported the award. The court examined the provisions of Sections 165 and 166 of the Motor Vehicles Act, 1988, and noted that the Tribunal is constituted to adjudicate claims for compensation in respect of accidents involving death, bodily injury, or damage to property of a third party. An own damage claim by the owner for damage to his own vehicle does not fall within the ambit of Section 166. The court held that such a claim is contractual in nature and must be adjudicated by a civil court or consumer forum. Consequently, the court allowed the appeal, set aside the Tribunal's award, and dismissed the claim petition, leaving the respondent owner free to pursue his remedy before the appropriate forum.
Headnote
A) Motor Vehicles Act - Jurisdiction of Claims Tribunal - Own Damage Claim - Sections 165, 166 Motor Vehicles Act, 1988 - The Tribunal under Section 165 is constituted to adjudicate claims for compensation in respect of accidents involving death, bodily injury, or damage to property of a third party. An 'own damage claim' by the owner of the vehicle for damage to his own vehicle is not a claim under Section 166 but a contractual claim under the insurance policy, which must be adjudicated by a civil court or consumer forum. The Tribunal lacks jurisdiction to entertain such a claim. (Paras 2, 6-8)
Issue of Consideration
Whether the Motor Accidents Claims Tribunal constituted under Section 165 of the Motor Vehicles Act, 1988 can entertain under Section 166 of the said Act an 'Own Damage Claim'.
Final Decision
Appeal allowed. Impugned judgment and award set aside. Claim petition dismissed. Respondent no.1 is at liberty to pursue remedy before appropriate forum.
Law Points
- Motor Accidents Claims Tribunal jurisdiction limited to claims for death
- bodily injury
- or property damage of third parties
- Own damage claim is contractual and not maintainable under Section 166 of Motor Vehicles Act
- 1988
Case Details
2017 LawText (BOM) (09) 56
First Appeal No. 422 of 2002
Shri A.D. Soman for Appellant, Shri R.R. Sancheti h/f Shri R.R. Mantri for Respondent Nos.1 & 4, Mr. V.N. Upadhye for Respondent No.3
The Divisional Manager, United India Insurance Company Ltd., Divisional Office, New Osmanpura, Aurangabad
1. Subhash s/o. Pitamberlal Jaiswal, 2. Budhan Khan s/o. Bhikan Khan Pathan, 3. Sureshsing s/o. Amarsing, 4. Divisional Manager, National Insurance Co.
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Nature of Litigation
Appeal against award of Motor Accidents Claims Tribunal granting own damage claim to vehicle owner.
Remedy Sought
Insurance Company sought setting aside of Tribunal's award on ground of lack of jurisdiction.
Filing Reason
Insurance Company challenged Tribunal's jurisdiction to entertain own damage claim under Section 166 of Motor Vehicles Act.
Previous Decisions
Motor Accidents Claims Tribunal at Aurangabad in Claim Petition No.269/1993 awarded Rs.2,74,000 to owner for damage to his jeep.
Issues
Whether the Motor Accidents Claims Tribunal can entertain an 'Own Damage Claim' under Section 166 of the Motor Vehicles Act, 1988.
Submissions/Arguments
Appellant argued that Tribunal lacked jurisdiction to entertain own damage claim as it is contractual and not a third-party claim.
Respondent supported the award, contending that the Tribunal had jurisdiction.
Ratio Decidendi
The Motor Accidents Claims Tribunal constituted under Section 165 of the Motor Vehicles Act, 1988 has jurisdiction only to adjudicate claims for compensation in respect of accidents involving death, bodily injury, or damage to property of a third party. An own damage claim by the owner of the vehicle for damage to his own vehicle is not a claim under Section 166 but a contractual claim under the insurance policy, which must be adjudicated by a civil court or consumer forum.
Judgment Excerpts
'Whether the Motor Accidents Claims Tribunal constituted under Section 165 of The Motor Vehicles Act, 1988 can entertain under Section 166 of the said Act an 'Own Damage Claim' is the question for my consideration in the present appeal.'
The Tribunal under Section 165 is constituted to adjudicate claims for compensation in respect of accidents involving death, bodily injury, or damage to property of a third party. An 'own damage claim' by the owner of the vehicle for damage to his own vehicle is not a claim under Section 166 but a contractual claim under the insurance policy.
Procedural History
Respondent no.1 filed Claim Petition No.269/1993 before Motor Accidents Claims Tribunal, Aurangabad, which was allowed on 16.02.2002 awarding Rs.2,74,000. Insurance Company filed First Appeal No.422/2002 before High Court of Bombay, Bench at Aurangabad.
Acts & Sections
- Motor Vehicles Act, 1988: 165, 166
