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1991 Supreme(Del) 681

High Court Of Delhi
NEW INDIA ASSURANCE COMPANY LIMITED - Appellant
Versus
PUSHPA KAKKAR - Respondent
First Appeal Order 28 of 1991
Decided On : 12/10/1991

Advocates Appeared:
M.L.Mahajan, S.M.SURI

The liability of an insurance company for third party claims is not limited to the amount specified in the policy if the premium charged is higher than the premium for a policy with limited liability.

Headnote:

MOTOR VEHICLE ACCIDENT - COMPENSATION - DEATH OF SECTION OFFICER - LIABILITY OF INSURANCE COMPANY - UNLIMITED LIABILITY - INTEREST ON COMPENSATION - AWARD OF COMPENSATION.

Fact of the Case:

The deceased, Surender Mohan Kakkar, was working as a Section Officer in the Ministry of Home Affairs, earning a monthly salary of Rs. 4,200. On October 21, 1988, he was involved in a motor vehicle accident while riding his scooter. The accident was caused by the rash and negligent driving of a truck owned and driven by respondent No. 1. The deceased died on the spot. The petitioners, the widow, minor son, and parents of the deceased, filed a petition under Section 110-A of the Motor Vehicles Act, 1988, claiming compensation for the death of the deceased.

Finding of the Court:

The court found that the accident was caused by the rash and negligent driving of the truck driver, respondent No. 1. The court also found that the deceased was earning a monthly salary of Rs. 4,200 and was 42 years old at the time of his death. The court held that the petitioners were entitled to compensation for the death of the deceased.

Issues: 1. Whether the accident was caused by the rash and negligent driving of the truck driver? 2. What amount of compensation, if any, are the petitioners entitled to and from whom? 3. Whether the liability of the respondent No. 2 is limited as claimed in the preliminary objections?

Ratio Decidendi: The court held that the accident was caused by the rash and negligent driving of the truck driver, respondent No. 1. The court also held that the petitioners were entitled to compensation for the death of the deceased. The court awarded compensation of Rs. 3,36,000, including Rs. 15,000 awarded under Section 92-A of the Motor Vehicles Act, 1988, with interest at 10% per annum from the date of filing of the petition. The court held that the liability to pay the compensation amount was that of the insurance company, respondent No. 2, since the truck was insured with respondent No. 2 to meet out all third party liability claims.

Final Decision: The court awarded compensation of Rs. 3,36,000, including Rs. 15,000 awarded under Section 92-A of the Motor Vehicles Act, 1988, with interest at 10% per annum from the date of filing of the petition. The court held that the liability to pay the compensation amount was that of the insurance company, respondent No. 2.

Mrs. Santosh Duggal, J.

( 1 ) SMT. Pushpa Kakkar and other legal heirs ofthe deceased Surender Mohan Kakkar has filed the petition u/sec. 110-A of them. V. A. claiming compensation amount of Rs. 21,00,000. 00 from the respondentson account of the death caused due to the motor vehicle accident.

( 2 ) THE short facts of the case as per the petitioners are that Sh. Surender Mohan Kakkar deceased aged about 42 years was working as Sectionofficer of the Govt. of India, Ministry of Home Affairs on a monthly salary ofrs. 4,200. 00p. m. The petitioner No. 1 is the widow of the deceased and petitioner No. 2 is the minor son and petitioners No. 3 and 4 are the parents of thedeceased who were all dependent on the deceased. On 21-10-88 at about3. 40 p. m. the deceased was going on his two wheeler scooter No. DBK 491from his office towards his home at Vikaspuri and when he reached near Kirbyplace opposite police station a police picket was installed by the police authorities for the purpose of routine checking and in the meantime it is alleged atruck bearing No. DHG 909 owned and driven by Gopal Singh respondentno. 1 and insured with respondent No. 2 came in a fast speed driven in a rashand negligent manner and hit truck No. DHG 909 from behind the scooter. It is stated that the truck driver inspite of hitting the scooter from its back didnot slow down the vehicle nor gave any horn struck his truck with full forcefrom behind the scooter with the result Surender Mohan Kakkar fell down fromthe scooter. and front tyre of the truck crushed and ran over the left part of thebody with the result Surender Mohan Kakkar. died instantly who was immediaately removed to Safdarjang Hospital in a P. C. R. van but was declared dead. Itis stated that the accident was caused due to the rash and negligent driving oftruck No. DHG 909 driven by Respondent No. 1.

( 3 ) ACCORDING to the petitioners the deceased was a young man of 42years with sober habits and non-smoker and non-drinker and because of hisuntimely death his wife aged about 42 years and minor son aged about 15 yearsand the parents have all been deprived of his who were all dependent on him. The deceased was earning Rs. 4,200. 00 p. m. and was due for promotion andwould have retire at least as Director in the Govt. of India on the scale ofrs. 8,000. 00 p. m. and would have worked upto the age of 58 years. It is statedthat there was history of longivity in the family of the deceased as the father ofthe deceased was still alive at the age of 66 years. It is prayed that the compensation amount of Rs. 21,00,000. 00 alongwith interim amount as providedu/sec. 92-A of the M. V. A. with interest @ 18% p. a. may be passed in favourof the petitioners against the respondents.

( 4 ) AFTER the registration of the petition notice of the petition wasgiven to the respondents who has contented the petition and have filed theirwritten statements.

( 5 ) IN the written statement filed by respondents No. 1 factum of accident is not denied. However, it is denied that the respondent No. 1 had hit thescooter from behind while driving the truck in a rash and negligent manner. According to respondent No, 1 the deceased himself was negligent in driving thescooter. According to respondent No. 1 it is denied. that the deceased wasdriving the scooter. in a slow speed due to the police barrier. In fact, thedeceased came from behind the respondent truck and wanted to pass early, therespondent truck was absolutely in a slow speed and was passing carefully andit was the deceased who came from behind and wanted to pass the barrier without waiting for side driving his scooter negligently. It is stated that since theaccident was not caused due to the fault of respondent No. 1, as such the petition is not maintainable and be rejected.

( 6 ) A. separate written statement was also filed on behalf of respondentno. 2. A preliminary objection was raised that respondent No. 2 had noknowledge about the alleged accident as the insured has not i



















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