Case Note & Summary
The present appeal was preferred by the National Insurance Co., Ltd., the insurer of the offending vehicle, against the judgment and award dated 24.11.2014 passed by the 3rd Additional District Judge and 4th Additional Motor Accident Claims Tribunal, Belagavi, in MVC No.637 of 2012, whereby compensation of Rs.3,01,500/- with interest at 8% p.a. was awarded to the claimant, Bharmappa Chandrappa Mayappagol @ Mayannavar, who sustained injuries in a motor vehicle accident. The appellant-insurer contended that the offending vehicle was being used in violation of the terms of the permit, and therefore, the insurer should not be held liable. The court, after hearing the parties, observed that the insurer is liable to pay compensation to the third party claimant, but is entitled to recover the amount from the owner of the vehicle if there is a breach of policy conditions. Accordingly, the appeal was dismissed, and the insurer was directed to pay the compensation amount to the claimant with liberty to recover the same from the owner of the offending vehicle in accordance with law.
Headnote
A) Motor Accident Claims - Liability of Insurer - Breach of Policy Conditions - Section 173(1) Motor Vehicles Act, 1988 - The insurer appealed against the award of compensation to the injured claimant, contending that the vehicle was used in violation of permit conditions. The court held that the insurer is liable to pay compensation to the third party, but is entitled to recover the amount from the owner of the vehicle if there is a breach of policy conditions. (Paras 1-5)
B) Motor Accident Claims - Right to Recover - Breach of Policy Conditions - The court directed the insurer to pay the compensation amount to the claimant and granted liberty to recover the same from the owner of the offending vehicle in accordance with law. (Para 5)
Issue of Consideration
Whether the insurer is liable to pay compensation to the claimant when the offending vehicle was being used in violation of the terms of the permit, and whether the insurer can be exonerated from liability.
Final Decision
The appeal is dismissed. The appellant-insurer is directed to pay the compensation amount to the claimant and is at liberty to recover the same from the owner of the offending vehicle in accordance with law.
Law Points
- Motor Accident Claims
- Liability of Insurer
- Breach of Policy Conditions
- Right to Recover
- Section 173(1) Motor Vehicles Act
- 1988
Case Details
2017 LawText (KAR) (10) 4
Miscellaneous First Appeal No.100573 of 2015 (MV)
Smt Preeti Shashank Hegde for appellant, Sri Vitthal S Teli for C/R1, Sri Ravi S. Balikari for R2, Sri Suresh S. Gundi for R4
National Insurance Co., Ltd., The Divisional Manager, Having its office at Ramdev Galli, Belagavi, Represented through its Regional Office, Arhanth Plaza, Kusugal Road, Hubli, Represented by its Dy. Manager.
1. Bharmappa Chandrappa Mayappagol @ Mayannavar, Aged about: 41 years, Occ: Lineman and Agrl.Coolie (Now Nil), R/o: Shiradan, Tq: Hukkeri, Dist: Belagavi. 2. Special Officer, College of Horticulture Koppal, Koppal-583231, Dist: Koppal. 3. Gangappa Shivarayappa Dhabannavar, Aged about 43 years, Occ: Business, R/o: Hunshayal, Tq: Gokak, Dist: Belagavi. 4. The Manager, Reliance General Insurance Co., Ltd., Having its office Mahadev Plaza, Sy.No. 1357/A, Near Kolhapur Circle, Belagavi.
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Nature of Litigation
Appeal against judgment and award of compensation in a motor accident claim.
Remedy Sought
The appellant-insurer sought to set aside the award of compensation on the ground that the offending vehicle was used in violation of permit conditions.
Filing Reason
The insurer was aggrieved by the award of compensation to the claimant.
Previous Decisions
The Tribunal awarded compensation of Rs.3,01,500/- with interest at 8% p.a. in MVC No.637/2012.
Issues
Whether the insurer is liable to pay compensation when the vehicle was used in violation of permit conditions?
Whether the insurer can be exonerated from liability to third party?
Submissions/Arguments
The appellant-insurer contended that the offending vehicle was being used in violation of the terms of the permit, and therefore, the insurer should not be held liable.
The respondent-claimant supported the award and argued that the insurer is liable to pay compensation to third parties.
Ratio Decidendi
The insurer is liable to pay compensation to the third party claimant even if there is a breach of policy conditions, but the insurer is entitled to recover the amount from the owner of the vehicle.
Judgment Excerpts
The present appeal has been preferred by the appellant-insurer being aggrieved by the judgment and award dated 24.11.2014 passed by the 3rd Additional District Judge and 4th Additional Motor Accident Claims Tribunal, Belagavi, in MVC No.637 of 2012.
Though the appeal is listed for admission, with consent of the learned counsel appearing for the parties, it is taken up for final disposal.
Procedural History
The claimant filed MVC No.637/2012 before the 3rd Additional District Judge and 4th Additional Motor Accident Claims Tribunal, Belagavi, which awarded compensation of Rs.3,01,500/- with interest at 8% p.a. on 24.11.2014. The insurer appealed against the award before the High Court of Karnataka, Dharwad Bench, in MFA No.100573/2015. The appeal was heard and disposed of on 31.10.2017.
Acts & Sections
- Motor Vehicles Act, 1988: 173(1)
