The main legal point established in the judgment is that a trailer attached to a tractor is deemed to be a motor vehicle and becomes a goods vehicle, requiring separate insurance as per the Motor Vehicles Act.

S. VENKATARAMAN, J.

( 1 ) THIS appeal is filed by the insurer of the tractor bearing No. MYK 6450 who was third respondent before the Tribunal challenging the finding of the Tribunal that the insurer is liable to pay the compensation awarded to the claimant, who is the first respondent, for the injuries sustained by him in an accident which took place on 30. 8. 1987 at 10. 30 p. m. on Cunnigham road, Bangalore.

( 2 ) THE Tribunal has held that the first respondent sustained injuries in the accident on account of the rash and negligent driving of the tractor and trailer bearing Nos. MYK 6450 and MYK 5298, respectively, by its driver. It is not disputed that the appellant has issued a policy in respect of the tractor bearing No. MYK 6450 and the trailer bearing No. MYK 5298 had not been insured. The appellant had taken up a plea that as only the tractor had been insured with them and that the accident was caused by the tractor-trailer they are not liable to indemnify the owner of the tractor-trailer, who is the present third respondent. They contended that the policy prohibited the use of the tractor for drawing a trailer and that as there was breach of terms of the policy, the insurer was absolved from any liability to pay the compensation. The Tribunal has held that as the tractor was insured and as the trailer cannot move by itself, the non-insurance of the trailer would not take away the liability of the insurer of the tractor. The Tribunal has therefore made the appellant insurer liable for the entire compensation awarded to the claimant.

( 3 ) THE learned counsel for the appellant Sr. H. G. Ramesh contended that the policy specifically contains a clause prohibiting the use of the tractor while drawing a trailer and that as admittedly the tractor was drawing a trailer at the time of the accident there is a breach of condition of the policy and as such the insurer cannot be made liable for the compensation. He further contended that the definition of 'motor vehicle' would show that it includes a trailer, that under the Motor vehicles Act no motor vehicle can be used on the road without it being insured and that as such it is mandatory to insure even a trailer which comes within the definition of "motor vehicle'. His contention was that if even in a case where the trailer is not insured the insurer of the tractor alone is made liable for the claim arising out of an accident caused by tractor-trailer, then those provisions of the Motor Vehicles Act which stipulate that even a trailer will have to be insured become redundant.

( 4 ) WITH regard to the contention that there is a violation of the terms of the policy in as much as the policy has prohibited the use of the tractor for drawing a trailer is concerned, it must be pointed out that an insurer cannot avoid its liability under the policy on the ground that there was violation of some terms of the policy unless its objection falls within the four corners of the defence which the Motor Vehicles Act permits to be taken by the insurer. As the accident took place in 1987 the provisions of the Motor Vehicles Act, 1939 are applicable. Section 96 (2) (b) of the 1939 Act specifies the conditions excluding the use of the vehicle, violation of which would give a right to the insurer to avoid its liability and that clause reads as hereunder:

"section 96 (2) (b) that there has been a breach of a specified condition of the policy, being one of the following conditions, namely: (i) a condition excluding the use of the Vehicle- (a) for hire or reward, where the vehicle is on the date of the contract of insurance a vehicle not covered by a permit to ply for hire or reward, or (b) for organised racing and speed testing, or (c) for a purpose not allowed by the permit under which the vehicle is used, where the vehicle is a transport vehicle, or (d) without side-car being attached, where the vehicle is a motor cycle;" it will be seen that a condition excluding the use of the vehicle for dra

Click Here to Read the rest of this document