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SUDHANSHU DHULIA, K. VINOD CHANDRAN
Manjusha – Appellant
Versus
United India Assurance Company Limited – Respondent
JUDGEMENT
K. VINOD CHANDRAN, J.
1. Leave granted.
2. The question arising in this appeal is as to whether the family of the brother of the owner of the vehicle, who died in the accident when the tyre of the car he was driving burst, is entitled to claim compensation under the Motor Vehicles Act, 1988 [For brevity ‘the MV Act’]. It is trite that the insurer has no statutory liability to cover the risk of the owner, or as in this case the driver of the vehicle, who steps into the shoes of the owner, when the statutory liability is restricted to third party liabilities.
3. In the present case the claimants, who are the widow, minor children and the parents of the deceased, approached the Tribunal, which granted an amount of Rs.25,82,000/- based on the income of the deceased and the amounts, incurred for transportation, loss of consortium as also travelling and funeral expenses. The insurance company filed an appeal essentially on the ground that there was negligence on the part of the driver, thus absolving the insurer from the liability to indemnify, since the driver, who steps into the shoes of the owner, is the tortfeasor. The High Court looked into the policy and found no case for imp
Motor Insurance – It is not statutory liability but contractual liability of a personal accident cover which forms basis of claim raised – Guidelines issued by Tariff Advisory Committee regulates iss....
Insurance Company cannot evade liability for compensation if additional premium for paid driver was accepted, regardless of the driver's employment status.
The insurer is jointly liable for compensation unless it proves a breach of policy conditions, emphasizing statutory liability under the Motor Vehicles Act.
When accident occurs due to own fault and negligence Insurance Company would not be liable to pay any compensation.
Liability under MV Act sections clearly rests on the vehicle owner or insurer, not the driver.
Insurance companies cannot evade liability if they fail to prove the driver's lack of a valid license and if the vehicle was insured.
A borrower of a vehicle is entitled to personal accident coverage under the insurance policy, despite not being the owner.
The main legal point established in the judgment is the interpretation of insurance coverage for personal injury to the owner of the vehicle under Section 147 of the Motor Vehicles Act.
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