IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
MALASRI NANDI, J.
Bajaj Allianz General Insurance Co. Ltd. – Appellant
Versus
Kasirun Nessa and Others – Respondents
MAC App. No. 182 of 2011
Decided On : 27-04-2022
MV Act, 1988 - Section 147, 166, 163-A - Appeal - Application for compensation - Requirements of policies and limits of liability - Deceased was proceeding towards his house under Police station by riding a motor cycle owned by his own brother, he met with an accident, when motor cycle got hit against divider post of railway line - Accident occurred as road became slippery as it was raining - As a result of said accident, deceased sustained injuries on his person and he died on spot - Whether an application for demand of compensation could have been made by legal representatives of deceased as provided in Section 166 of MVA - Claim u/s 140 of the Act may be made not merely as in terms of the award but it could be even at the time of the final disposal.
Finding of the Court:
Deceased stepped into shoes of owner of vehicle in question, therefore claimants cannot be stated to be third party for purpose of awarding compensation under Act - Benefits of insurance policy is restricted to personal insurance cover to owner and personal accident cover is a contract between insured and insurer and only designed to give benefit to insured and not to borrower - Legal representatives of third party cannot claim benefit of death of borrower.
Result: Appeal is allowed.
JUDGMENT :
MALASRI NANDI, J.
1. Heard Mr. R. Goswami, learned counsel appearing for the appellant/petitioner as well as Mrs. R. Devi, learned counsel appearing for the respondents.
2. This appeal has been preferred by the insurer of the vehicle AS23F/0682, Bajaj Allianz General Insurance Company Ltd against the award dated 30.07.2010 passed by the learned Member, MACT, Tinsukia in MAC Case No. 76/2007 wherein the appellant insurer has been made liable for compensation for the death of the borrower of the Motor cycle due to the injuries received by him while driving the vehicle.
3. The brief facts giving rise to the case is that on 13.05.2007 at about 11 PM while the deceased Safik @ Safik Ullah Ansari was proceeding from Hijuguri, Tinsukia towards his house at Philobari under Doom Dooma Police station by riding a motor cycle bearing no AS23F/0682 owned by his own brother, he met with an accident near Mansara, when the motor cycle got hit against the divider post of the railway line. The accident occurred as the road became slippery as it was raining. As a result of the said accident, Safik @ Safik Ullah Ansari sustained injuries on his person and he died on the spot. In this connection one U.D Case was registered vide Doom Dooma P.S. U.D. Case No. 44/07 dated 14.06.2007. It is stated in the claim petition that the claimants were solely dependent on the income of the deceased. It is an admitted fact that at the relevant time of accident the alleged vehicle was duly insured with the Bajaj Allianz General Insurance Company.
4. Learned counsel for the appellant contended that the deceased had borrowed the motor cycle AS23F/0682 from his brother, the respondent no 4 here in this appeal and while driving the same hit a divider post of a railway line and succumbed to his injury. The accident allegedly occurred due to slippery condition of the road. The aforesaid motor-cycle was insured by the appellant insurance company. The appellant filed written statement with a very specific pleading that since the vehicle was driven by the deceased himself, the deceased was not a third party and therefore the respondent/claimants are not entitled to any compensation. It was also pleaded that since the deceased had stepped into the shoes of the insured himself the petition is not maintainable as against the appellant insurance company. There was no allegation of rash and negligence against respondent no 4, the owner of the motor cycle in the claim petition though filed u/s 166 of Motor Vehicles Act 1988.
In support of his submissions learned counsel has placed reliance on the following case laws:
(ii) New India Assurance Company Ltd. vs. Sadanand Mukhi, AIR 2009 SC 1788
(iii) National Insurance Company Ltd. vs. Shyam Rai Mohanta, 2018 ACJ 2262
5. I have heard learned counsel for the appellant and perused the documents available on record.
6. From perusal of the case record, it reveals that the deceased was the son of the claimants no 1 and 2 and father of claimant no 3 who is the minor son of the deceased. From the claim petition it is seen that at the time of filing of MAC Case No. 76/2007 before the MACT, Tinsukia, the application was filed u/s 166 of MV Act, 1988 claiming compensations for the death of Safik @ Safik Ullah Ansari. But subsequently the word “under section 166” was striking out by putting Initial and date 29.11.2007 i.e. on the date of filing of the case. It is not reflected in the claim petition on which of the provision the application for claiming compensation was filed. In the MV Act, there are only two provisions for claiming compensation in case of death or injury caused by a motor vehicle i.e. u/s 166 or u/s 163 A. As it appears from the claim petition that the monthly income of the deceased was shown as Rs. 8000/- so annual income comes to Rs. 96,000/- . As such it transpires that the claimant filed the claim petition u/s 166 of MV Act as because if the case is fi
Nimgamma vs. United India Insurance Company Ltd. AIR 2009 SC 3056
National Insurance Company Ltd. vs. Shyam Rai Mohanta
New India Assurance Company Ltd. vs. Sadanand Mukhi
New India Assurance Company Ltd. vs. Sadanand Mukhi and Others
A claim u/s 140 of the Act may be made not merely as in terms of the award but it could be even at the time of the final disposal.
Motor Accident - Respondent/claimant is not covered under the M.V. Act as the injured/claimant stepped into the shoes of the owner of the vehicle in question. Thus, he cannot be stated to be third pa....
A borrower of a vehicle is not considered a third party under the insurance policy, and the insurance company's liability is limited to the terms of the contract.
The central legal point established in the judgment is that under the M.V. Act, the liability of the insurance company depends on the interpretation of the provisions regarding third-party claims, an....
The main legal point established in the judgment is the interpretation and application of Section 163(a) of the MV Act, including the maintainability of claim petitions and the insurer's ability to r....
A borrower of a vehicle steps into the shoes of the owner, disqualifying their legal heirs from claiming compensation against the insurance company.
Compensation claims under Section 163A of the Motor Vehicles Act are not applicable when the deceased is the owner or a relative of the owner of the vehicle involved in the accident.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.