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PATNA HIGH COURT
Ravi S.Dhavan and Aftab Alam JJ.
Oriental Insurance Company Limited
Versus
Arehana Rajan
Letter Patent Appeal No. 758 of 1999 ;
Decided On : MAY 10, 2000
Insurance - Liability for Murder - Scope of Indemnity Clause
Fact of the Case:
The insurance company contested the judgment on the basis that a cold-blooded murder inside the insured vehicle does not impose any obligation on the insurance company under a contract of indemnity.
Finding of the Court:
The court referred to a recent judgment of the Apex Court, which held that the insurance company is liable to pay compensation to the heirs of a person murdered with the intent of causing violence upon the occupants, as this is considered an accident. The court concluded that the scope of the indemnity clause stands enlarged after the judgment of the Apex Court and dismissed the appeals.
Issues: Controversy over the liability of the insurance company for a murder inside the insured vehicle
Ratio Decidendi: The recent judgment of the Apex Court established that the insurance company is liable to pay compensation for a murder inside the insured vehicle, considering it as an accident and enlarging the scope of the indemnity clause.
Final Decision: The appeals were dismissed, affirming the liability of the insurance company for the murder inside the insured vehicle.
Dhavan, J.
1. In these Letters Patent Appeals all controversies raised by the insurance company for the purposes of impugning the judgment on the Miscellaneous Appeal No. 457 of 1998; Oriental Insurance Co. Ltd. V/s. Archana Rajan and Miscellaneous Appeal No. 458 of 1998; Oriental Insurance Co. Ltd. v. Anita Devi stand answered by the recent judgment of the Apex Court in Rita Devi v. New India Assurance Co. Ltd., 2000 ACJ 801 (SC). The contention in the present appeal is that the fact that a cold blooded murder may have taken place inside the vehicle which has been insured with the company does not cast any obligation on the insurance company under a contract of indemnity. The impugned order is dated 17.5.1999.
2. The Apex Court in its recent judgment has held that the insurance company is liable to pay compensation to the heirs of a person murdered with intent of causing violence upon the occupants, as this is an accident. In the circumstances the court cannot accept the narrow interpretation put forward that the liability of the insurance company is limited and does not entail a situation like an incident in the present case. Clearly, the scope of indemnity clause stands enlarged after the judgment of the Apex Court. In the circumstances, there is no merit in these appeals. These are accordingly dismissed. L.P.As. dismissed.
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