Case Note & Summary
The appeal was filed by the Oriental Insurance Company Limited against the judgment and award dated 19.02.2013 passed by the Motor Accident Claims Tribunal, Bijapur, in MVC No.535/2012, whereby the Tribunal partly allowed the claim petition and awarded compensation of Rs.3,29,500/- with interest at 6% per annum to the claimants, who are the wife and children of the deceased Gurulingappa. The facts are that on 11.12.2006, the deceased was travelling as an occupant in a jeep bearing registration No.KA-09/M-4033 from Ranjol Village with his friend when the jeep met with an accident with a tractor near Srinivas Saradagi cross within the limits of Gulbarga University Police Station. The deceased sustained fatal injuries and died in the District Hospital, Gulbarga. The claimants filed a claim petition under Section 163-A of the Motor Vehicles Act, 1988, adducing evidence of PW.1 and marking Exs.P1 to P7. The Insurance Company contested the case by filing a written statement and adducing evidence of RW.1, marking Ex.R1. The Tribunal, after appreciation of evidence, allowed the claim petition and awarded compensation. The Insurance Company appealed, contending that the deceased was an occupant of the jeep and the policy did not cover occupants, and therefore the Insurance Company is not liable to pay compensation. The court considered the issue and held that under Section 163-A of the Motor Vehicles Act, 1988, the liability is no-fault and strict; the owner is deemed liable, and the Insurance Company is bound to indemnify. The occupant of a vehicle is a third party for the purpose of Section 163-A, and the policy exclusion regarding occupants does not apply to claims under this section. The court dismissed the appeal, confirming the award of the Tribunal.
Headnote
A) Motor Accident Claims - Section 163-A of Motor Vehicles Act, 1988 - No-Fault Liability - Occupant as Third Party - The court considered whether the Insurance Company can avoid liability under Section 163-A on the ground that the deceased was an occupant of the insured vehicle. Held that under Section 163-A, the liability is no-fault and strict; the owner is deemed liable, and the Insurance Company is bound to indemnify. The occupant of a vehicle is a third party for the purpose of Section 163-A, and the policy exclusion regarding occupants does not apply to claims under this section. (Paras 4-6) B) Motor Accident Claims - Section 163-A of Motor Vehicles Act, 1988 - Strict Liability - No Defence of Policy Exclusion - The court held that in a claim under Section 163-A, the Insurance Company cannot raise defences based on policy terms or exclusions. The section creates a statutory liability on the owner, and the insurer is liable to pay compensation as per the structured formula. The Tribunal's award was upheld. (Paras 5-6)
Issue of Consideration
Whether the Insurance Company can avoid liability under Section 163-A of the Motor Vehicles Act, 1988, on the ground that the deceased was an occupant of the insured vehicle and the policy did not cover occupants?
Final Decision
The appeal is dismissed. The judgment and award dated 19.02.2013 passed in MVC No.535/2012 by the Motor Accident Claims Tribunal, Bijapur, is confirmed. No order as to costs.
Law Points
- Section 163-A of Motor Vehicles Act
- 1988
- occupant of vehicle as third party
- strict liability
- no-fault liability
- deemed owner liability
- insurance company liability
- policy exclusion not applicable
