Liability for compensation in motor vehicle accidents may shift to the insurance company if the insurance policy adequately covers such liability, despite initial contrary findings.

Judgment :

(BUDI HABUNG, J.)

Heard D. K. Rajak, learned counsel for the appellant. I have also heard Mr. K. K. Bhatta, learned counsel for the respondent no. 7/ HDFC Ergo General Insurance Company Limited and Mr. A. Roshid, learned counsel appearing on behalf of the respondents/claimants nos. 1 to 6.

2. This appeal has been directed against the judgment dated 08.02.2018, passed by the Member of the Motor Accident Claims Tribunal-2, Kamrup (M), Guwahati, in MAC Case No. 2565/2009. By the said judgment, the learned Tribunal awarded a compensation of Rs. 3,93,500/- for the death of the deceased in the motor accident and directed the owner of the offending vehicle to pay the awarded amount to the claimant within three months from the date of the judgment, with an interest of 6% per annum from 01.11.2017. In the event of failure to make the payment within the stipulated time, the compensation amount shall bear interest at the rate of 7% per annum from the date of filing the claim petition.

3. It is to be noted that, at the outset, the learned counsel for the appellant clarified that the facts of the case and the quantum of compensation awarded by the Tribunal in the impugned judgment are not under challenge. The only issue challenged in this appeal pertains to the liability fixed upon the owner of the vehicle/appellant for payment of the compensation, specifically on the question of “who is liable to pay the compensation to the claimant,” as decided in issue no. 2 of the judgment.

4. It is submitted that at the time of the accident, the offending vehicle, bearing registration no. ML-09-6618 (Indica car), owned by the opposite party no. 1 (the appellant), was duly insured under a policy issued by the opposite party no. 2 (respondent no. 7), HDFC ERGO General Insurance Company Limited. The insurance coverage was under a sum assured package policy covering third-party liabilities, including those of the owner and driver. The policy was valid from 16.02.2009 until midnight of 15.02.2010. Since the accident occurred on 12.07.2009, the insurance policy of the offending vehicle was valid and in force at that time. The insurance policy No. VP00359057000101 was produced and exhibited before the Tribunal as Exhibit-A by DW-1.

5. However, in his evidence, DW-1, Shri Salyan Sengupa, Assistant Manager of HDFC ERGO General Insurance Company Limited, admitted that at the time of the accident, the vehicle was insured under the said policy. He further deposed that, according to the policy, it covered third-party risks but did not include coverage for the owner, driver, or passengers of the vehicle. Consequently, DW-1 stated that the insurance company was not liable to pay compensation to the claimants for the death of the deceased, who was the driver of the vehicle at the time of the accident. Based on this deposition, the Tribunal observed that there was no coverage for the owner, driver, or other travellers of the vehicle, and therefore, held that the claimants were not entitled to compensation from the insurance company. As a result, the Tribunal held the owner of the vehicle/appellant liable to pay the compensation, reasoning that the insurance company was not liable to indemnify the owner.

6. The appellant’s counsel contends that this finding was incorrect, leading to an erroneous determination of liability, and that the owner of the vehicle has been wrongly held responsible for the payment of the awarded compensation. This forms the basis of the present appeal.

7. It is pertinent to state that the issue in this appeal is limited to determining who is liable to pay the compensation to the claimant. During the