The insurance company remains liable for compensation claims even after the death of the insured, as per Section 155 of the Motor Vehicles Act, 1988, provided the claim arises from an event covered under an existing policy.

JUDGMENT :

(NISHA M. THAKORE, J.)

1. Present appeal at the instance of Insurance Co. is preferred under Section 173 of the MOTOR VEHICLES ACT , 1988 (for short “the Act”) being aggrieved and dissatisfied with the judgment and award dated 20.01.2022 passed by Motor Accident Claims Tribunal (Auxi.) & 4th Additional District Judge, Ahmedabad (Rural) at Mirzapur, in MACP No.672 of 2013.

1.1 The claimant before the Tribunal is the mother of the deceased Maheshbhai, aged about 18 years at the time of accident, which occurred on 17.02.2013, had approached the Tribunal seeking compensation amount of Rs.8 Lakhs under Section 166 of the Act. The Tribunal had partly allowed the aforesaid claim petition holding the respondent No.1 owner of the offending tractor and the respondent No.2 present appellant – Insurance Co. jointly and severally liable to pay the compensation of an amount of Rs. 4,80,000/- along with simple interest @ 9% p.a. from the date of filing of claim petition till its realization. The Tribunal had further directed to disburse 40% of the award amount to the claimant and remaining 60% of the award amount was directed to be deposited in the name of the claimant with a nationalized bank of her choice for a period of 6 years. The claimant was further held entitled to receive periodical interest on the aforesaid Fixed Deposit Receipt, however, was not entitled to raise loan or advance without prior permission of the Tribunal.

2. In brief, the case put forward in the claim petition as contended by the original claimant is that on 17.02.2013, the deceased Maheshbhai, who is also son of the respondent No.1, owner of the offending tractor, was traveling as laborer. The driver was driving the said tractor at full speed and in a rash and negligent manner. At about 10:45 a.m., when the tractor had reached near Steel Connect India Company, B/h. Suryadeep Hotel, Nr. Hathijan village, at that time, the driver lost his control over steering and the tractor proceeded on to the mound. Due to which the said tractor turned turtle. By aforesaid narration, the original claimant, who is otherwise not eye-witness to the accident, has contended that the deceased who was sitting on the tractor, had sustained fatal injuries and succumbed to such injuries. It was further submitted that the deceased was 18 years old at the time of accident and he was earning Rs. 3500/- to Rs.4000/- by doing labor work and has, therefore, prayed for compensation of Rs.8 lakhs under different heads.

2.2 The claim petition was proceeded ex parte against the respondent No.1 pursuant to the order passed below Exhibit 12 by the Tribunal. The respondent No.2 Insurance Co. had appeared before the Tribunal and had contested the claim petition by filing a written statement vide Exhibit 19. Specific defense was raised before the Tribunal that the deceased was traveling unauthorisedly in the tractor of ownership of his father and therefore, he cannot be termed as “third party” and the Insurance Co. cannot be held liable to pay any compensation. The defense of the driver of not holding a valid and effective license at the time of accident, was also raised. It was further contended that the owner of the vehicle by handing over the possession of the vehicle to such driver in contravention of the provisions of the Act and Rules framed thereunder as well as had also committed breach of terms and conditions of the policy.

2.3 The Tribunal had framed issues vide Exhibit 20. The same are reproduced as under:

1. Whether the petitioner proves that