2008 Supreme(SC) 221

2008(2) Supreme 144
Supreme Court of india
S.B. Sinha & V.S. Sirpurkar, JJ.
The New India Insurance Company — Petitioner
versus
Darshana Devi & Ors. — Respondents
Appeal (civil) 1232 of 2008
Decided on : 12-02-2008

Important point
The liability of an insurance company to recompense owner and driver of a vehicle, who are primarily responsible for payment of compensation to a victim or dependent of a deceased arising out of use of a motor vehicle, is statutory in nature. Whereas an owner of a motor vehicle is under a statutory obligation to get it compulsorily insured, defence of an insurance company is limited.

Headnote:Motor vehicles Act, 1988 – Sections 166 – 149(2) - Motor Accident claim – Liability of insurer – Death of deceased in a motor vehicular accident while traveling on mudguard of a tractor which was going to Hoshiarpur loaded with Safeda wood – Offending tractor was owned by three brothers and was being driven by a son of one of brothers – Driver of offending vehicle was not having a valid driving license at time of accident – Claim petition – Tribunal observing that Tractor used to be plied on hire and at relevant time, it was not being used for agricultural purposes for which it was insured held that although owners had contravened contracts of insurance, insurance company could not escape its liability in regard to third party risk but was entitled to recover amount of compensation from insurer, namely, owner of the offending vehicle - Tribunal awarded a sum of Rs. 2,04,000/- by way of compensation in favour of the claimants – Appeal – Dismissed by High Court – Appeal there against - The liability of an insurance company to recompense owner and driver of a vehicle, who are primarily responsible for payment of compensation to a victim or dependent of a deceased arising out of use of a motor vehicle, is statutory in nature - Whereas an owner of a motor vehicle is under a statutory obligation to get it compulsorily insured, defence of an insurance company is limited – Instantly Respondent 1 a poor labourer had suffered grievous injuries and had become disabled to a great extent - Amount of compensation awarded in his favour appeared to be on a lower side - Extraordinary jurisdiction under Article 142 of the Constitution of India exercised so as to direct that award may be satisfied by appellant but it would be entitled to realize same from owner of tractor and trolley – Hence, held not necessary for appellant to initiate any separate proceedings for recovery of the amount as provided for under the Motor Vehicles Act – Appeal dismissed.(Paras 13, 14)

       Facts of the case:-

       1.Deceased herein in the instant case died in a motor vehicular accident while traveling on mudguard of a tractor which was going to Hoshiarpur loaded with Safeda wood. Offending tractor was owned by three brothers and was being driven by a son of one of brothers. Driver of offending vehicle was not having a valid driving license at time of accident. On claim petition, being filed, Tribunal observed that Tractor used to be plied on hire and at relevant time, it was not being used for agricultural purposes for which it was insured. Tribunal held that although owners had contravened contracts of insurance, insurance company could not escape its liability in regard to third party risk but was entitled to recover amount of compensation from insurer, namely, owner of the offending vehicle. Tribunal awarded a sum of Rs. 2,04,000/- by way of compensation in favour of the claimants. Appeal thereagainst was dismissed by High Court.

       2.Present Appeal has been filed against said order of High Court.

       Findings of the Court : -

       The Court held that liability of an insurance company to recompense owner and driver of a vehicle, who are primarily responsible for payment of compensation to a victim or dependent of a deceased arising out of use of a motor vehicle, is statutory in nature. Whereas an owner of a motor vehicle is under a statutory obligation to get it compulsorily insured, defence of an insurance company is limited. Instantly Respondent 1 a poor labourer had suffered grievous injuries and had become disabled to a great extent. Amount of compensation awarded in his favour appeared to be on a lower side. Extraordinary jurisdiction under Article 142 of the Constitution of India exercised so as to direct that award may be satisfied by appellant but it would be entitled to realize same from owner of tractor and trolley. Hence, held not necessary for appellant to initiate any separate proceedings for recovery of the amount as provided for under the Motor Vehicles Act. Appeal was dismissed accordingly.

       Result : Appeal dismissed.