Case Note & Summary
The case involves an appeal by United India Insurance Company Ltd. against the judgment and award dated 02-04-2014 passed by the Motor Accident Claims Tribunal, Aurangabad in MACP No. 809 of 2008. The claimants, respondents No. 1 to 3 (Godabai, Renuka, and Ravi Shinde), sought compensation under Section 166 of the Motor Vehicles Act, 1988 for the death of Vinod Kisanrao Shinde, who died in a road accident on 13-07-2008. The deceased was travelling in a truck (registration No. HR-55-8483) owned by respondent No. 5 (M/s Indian Vehicle Carriers Pvt. Ltd.) and driven by respondent No. 4 (Wazir Khan). The claimants alleged that the deceased fell from the cabin of the truck due to the driver's negligence and sustained fatal head injuries. The Tribunal awarded compensation and directed the Insurance Company to pay the amount and recover it from the owner and driver under the 'pay and recover' principle. The Insurance Company appealed, challenging the award. The High Court upheld the Tribunal's decision, confirming the Insurance Company's liability to pay compensation and then recover from the insured parties.
Headnote
A) Motor Accident Claims - Negligence - Death of passenger falling from truck - Claimants alleged driver's negligence - Tribunal found driver negligent and awarded compensation - Insurance Company directed to pay and recover from owner/driver - Held that the Insurance Company is liable to pay compensation and then recover from the insured (Paras 1-3).
Issue of Consideration
Whether the Insurance Company is liable to pay compensation under the 'pay and recover' principle when the offending vehicle was insured but the driver was negligent?
Final Decision
The High Court dismissed the appeal and upheld the Tribunal's award, confirming the Insurance Company's liability to pay compensation and recover from the owner/driver.
Law Points
- Motor Vehicles Act
- 1988
- Section 166
- Section 173
- Pay and recover principle
- Vicarious liability of insurer
- Negligence in motor accident
Case Details
2017 LawText (BOM) (11) 58
First Appeal No. 1187 of 2014
Mr. S.V. Kulkarni for appellant, Mr. Swapnil Patunkar holding for J.P. Legal Associates for Respondents No. 1 to 4
United India Insurance Company Ltd.
Godabai W/o Kisanrao Shinde, Renuka W/o Vinod Shinde, Ravi S/o Late Vinod Shinde, Wazir Khan s/o Israiel Khan, M/s Indian Vehicle Carriers Pvt. Ltd.
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Nature of Litigation
First appeal under Section 173 of the Motor Vehicles Act, 1988 against the judgment and award of the Motor Accident Claims Tribunal.
Remedy Sought
The appellant-Insurance Company sought to challenge the Tribunal's award directing it to pay compensation and recover from the owner/driver.
Filing Reason
The Insurance Company disputed its liability to pay compensation under the 'pay and recover' principle.
Previous Decisions
The Motor Accident Claims Tribunal, Aurangabad in MACP No. 809 of 2008 awarded compensation and directed the Insurance Company to pay and recover.
Issues
Whether the Insurance Company is liable to pay compensation under the 'pay and recover' principle?
Submissions/Arguments
The appellant-Insurance Company argued that it should not be liable to pay compensation as the driver was negligent and the insured was at fault.
Ratio Decidendi
The Insurance Company is liable to pay compensation to third parties under the 'pay and recover' principle even if the insured is at fault, with the right to recover from the insured.
Judgment Excerpts
This first appeal is filed under section 173 of the Motor Vehicles Act, 1988...
Factual aspect giving rise to the present appeal in nutshell is that...
It has been alleged that on 13-07-2008 the deceased Vinod was travelling in the truck and suddenly he fallen on the road from the cabin of the driver of offending vehicle.
Procedural History
The claimants filed MACP No. 809 of 2008 before the Motor Accident Claims Tribunal, Aurangabad. The Tribunal passed judgment and award on 02-04-2014. The Insurance Company filed First Appeal No. 1187 of 2014 before the Bombay High Court, Bench at Aurangabad, which was reserved on 20-09-2017 and pronounced on 13-11-2017.
Acts & Sections
- Motor Vehicles Act, 1988: 166, 173
