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2005 Supreme(Kar) 720

Karnataka High Court
Judges : K.SREEDHAR RAO
UNITED INDIA INSURANCE CO.LTD. - Appellant
Versus
KELUDAPPA - Respondent
W. P 27 Of 2004
Decided On : 12/02/2005
Advocates Appeared :
B.C.SEETHA RAMA RAO

Headnote:Constitution of India -Article 12 -Insurance company -"State" within ambit of the Article -Is expected to maintain standards of fair play

       Motor Vehicles Act, 1988 -Section 149 -Liability of insurer -Vehicle was not meant to be used as taxi -When used, owner and driver liable for punishment -Not a ground to avoid liability when policy has covered risk of inmates. [K. Sreedhar Rao, J.] - The fact that the vehicle cannot be used as a taxi may attract punishement for the owner and driver under the Motor Vehicles Act and other allied enactment, but it is not a ground to exonerate the liability of the insurer to pay the compensation. When the insurer has covered the risk of an inmate of a private vehicle, it makes little difference whether the inmate is the fare paying passenger or gratuitous passenger.

       Motor Accident Claims -Principles -Liability of insurer -Vehicle was not meant to be used as taxi -When used, owner and driver liable for punishment -Not a ground to avoid liability when policy has covered risk of inmates. [K. Sreedhar Rao, J.] - The fact that the vehicle cannot be used as a taxi may attract punishement for the owner and driver under the Motor Vehicles Act and other allied enactment, but it is not a ground to exonerate the liability of the insurer to pay the compensation. When the insurer has covered the risk of an inmate of a private vehicle, it makes little difference whether the inmate is the fare paying passenger or gratuitous passenger.

SREEDHAR RAO, J.

( 1 ) NOTICE to R1 (c) in m. F. A. No. 992 of 2003 by way of paper publication is accepted. Both the cases arise out of the same accident.

( 2 ) THE writ petition is filed against the order passed by this court in C. R. P. No. 545 of 2003, which came to be dismissed on the ground that the revision is not maintainable. Hence, the writ is filed challenging the judgment and award in M. V. C. No. 1431 of 1997. M. F. A. No. 992 of 2003 pertains to M. V. C. No. 1417 of 1997.

( 3 ) THE petitioners are the inmates of the jeep bearing registration No. MH 10-C 0846, which met with the accident. The tribunal awarded compensation to the petitioners and directed the owner and insurer to pay the compensation. The insurer is in appeal seeking avoidance of liability on the ground that there is violation of permit conditions. Tempo-Trax is a private service vehicle. The evidence adduced discloses that the petitioner in M. V. C. No. 1417 of 1997 was travelling as fare paid passenger.

( 4 ) IN view of the violation of permit conditions it is argued that the insurer is not liable. The policy of insurance is a comprehensive policy, which covers the risk of inmates of the vehicle maximum to an extent of Rs. 1,00,000 per passenger under personal accident cover.

( 5 ) THE fact that the vehicle cannot be used as a taxi may attract punishment for the owner and driver under the Motor Vehicles Act and other allied enactment, but it is not a ground to exonerate the liability of the insurer to pay the compensation. When the insurer has covered the risk of an inmate of a private vehicle, it makes little difference whether the inmate is the fare paying passenger or gratuitous passenger.

( 6 ) THE contention that the forum for seeking compensation for the Personal accident Benefits Scheme is different is again a technical objection when the insurer is liable to pay under the policy. The insurer being the State within the meaning of Article 12 (sic of the Constitution of india) is expected to maintain standards of fair play and pay the compensation to the victims without resorting to technical objections. The insurer shall pay the compensation as per the terms of the policy.

( 7 ) IN that view, the award passed against the insurer is confirmed. The insurer to pay the compensation. Accordingly, the writ petition and the M. F. A. are dismissed. The amount in deposit to be transferred to the Tribunal for payment.


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