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IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
CHALLA GUNARANJAN
National Insurance Co.Ltd. – Appellant
Versus
V. Yasoda Vardhanarao, S/O Chittaiah, Junior Lecturer In A.P. Residential College, Tatipudi – Respondent
| Table of Content |
|---|
| 1. accident details and initial claims. (Para 1 , 2) |
| 2. arguments on liability and compensation evaluation. (Para 4 , 5 , 6 , 7) |
| 3. court's review of compensation award justification. (Para 8 , 9) |
| 4. legal limits of insurer's liability as per statute. (Para 11 , 12 , 14) |
| 5. final decisions on compensation adjustments. (Para 20 , 21) |
JUDGMENT:
The present appeal is preferred by National Insurance Company Limited/appellant herein assailing the order, dated 28.12.2019, passed in M.V.O.P.No.508 of 2016 on the file of the Motor Accidents Claims Tribunal – cum - IV Additional District Judge, Vizianagaram, by which the Tribunal has awarded compensation for damage of vehicle for an amount of Rs.5,95,355/-.
2. Brief facts of the case are as follows:
The parties herein are referred to as they were arrayed before the Tribunal for the sake of convenience.
(a) The claimant, owner of Maruti Swift VDI Car bearing No.AP35-P-3936, while proceeding from Visakhapatnam to Vizianagaram on 05.12.2025, was dashed from behind by a lorry bearing No.AP27-Y-7299, driven by respondent No.1/driver. On account of severity of the accident, the car being driven by the claimant was damaged. The said vehicle
Insurer's liability for third-party property damage is capped at Rs.6,000 under Section 147(2)(b) of the Motor Vehicles Act, 1988.
The insurer's liability for third-party property damage is limited to Rs.6,000 under Section 147(2)(b) of the Motor Vehicles Act, 1988.
Claims for own damages are not maintainable under the Motor Vehicles Act, 1988; liability of insurers for third-party property damage is limited to Rs.6,000/- under Act only policies.
The liability of the insurance company under Section 163-A of the Motor Vehicles Act, 1988 is not applicable when the owner of the vehicle is driving and no other vehicle is involved in the accident.
The insurer's liability is limited to the terms of the insurance policy, which does not cover the owner's death while riding their own motorcycle unless additional premium was paid.
The main legal point established in the judgment is that the liability of the insurance company for property damage to a third party is limited to Rs.6,000 under Section 147(2)(b) of the MV Act.
Point of law: Insurance Company was, in appeal before this Court challenging the judgment of the High Court awarding compensation to the owner of the insured vehicle.
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