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IN THE HIGH COURT OF KERALA AT ERNAKULAM
V.G. ARUN
Oriental Insurance Co. Ltd. – Appellant
Versus
M. Shereif, S/o. Kunhahammad – Respondent
| Table of Content |
|---|
| 1. essential facts regarding the accident and claim. (Para 1) |
| 2. arguments regarding liability under insurance policy. (Para 2 , 3) |
| 3. court's analysis on insurance coverage and compensation directions. (Para 4 , 5) |
| 4. precedents for insurer's obligation to pay compensation and clarify that it can seek recovery. (Para 6 , 7) |
| 5. conclusion and dismissal of the appeal. (Para 8) |
JUDGMENT :
The question arising for consideration in this appeal is whether the direction of the Tribunal to pay and recover the compensation awarded warrants interference, the insurance policy of the offending vehicle being an Act only Policy and the injured/deceased, a gratuitous passenger. The essential facts are as under;
The claim petition was filed by the husband, son and daughter of Pathukkutty, who died on 23.07.2014 after falling from the scooter ridden by her son in a rash and negligent manner. As against a claim for Rs.15,00,000/-, the Tribunal awarded Rs.7,84,000/- as compensation and directed the insurer/ appellant to effect payment and recover the amount from the owner of the scooter.
2. Learned Counsel for the appellant drew attention to the decisions in New India Assurance Co. Ltd. v. A
Insurers can be directed to pay compensation for gratuitous passengers if additional premiums are paid, despite an Act only policy limiting liability.
An insurance company can be directed to pay compensation to claimants and recover the amount from the vehicle owner, even if the deceased was a gratuitous passenger.
Gratuitous passengers in goods vehicles are not covered by standard insurance policies unless additional premiums are paid, rendering previous rulings on liability inapplicable.
The main legal point established in the judgment is that a 'Statutory Policy' under the Motor Vehicles Act, 1988, only covers death or bodily injury of a third party falling within the sweep of Secti....
The Insurance Company to pay compensation and recover it from the insured. However, these decisions were rendered in cases falling within sweep of Section 149 of Act ? cases involving violation of po....
An 'act only' insurance policy does not cover gratuitous passengers, thus the insurer is not liable for compensation.
Liability of insurers for gratuitous passengers in goods vehicles established through the 'pay and recover' principle.
The court established that an insurance company may be required to pay compensation to claimants even if there is a breach of policy conditions, provided the circumstances warrant such an order, ther....
The main legal point established in the judgment is the application of the principle of 'pay and recover' in specific circumstances and the exercise of plenary powers under article 142 of the Constit....
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