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High Court Of Rajasthan
Judgename : P.C.JAIN
RONAK BEGUM - Appellant
Versus
JORASINGH - Respondent
C. M. A. 109 Of 1994
Decided On : 05/06/1998
MOTOR VEHICLES ACT - INSURANCE - LIABILITY OF INSURANCE COMPANY - LIMITED LIABILITY - BURDEN OF PROOF - INSURANCE COMPANY FAILED TO PROVE INSURANCE POLICY - LIABILITY UNLIMITED.
Fact of the Case:
A private bus collided with a private car, resulting in the deaths of the car's owner and driver. The claimants, dependents of the deceased, filed claims for compensation under the Motor Vehicles Act, 1939. The insurance company contested the claims, arguing that its liability was limited to the statutory amount of Rs. 50,000/- as per the insurance policy.
Finding of the Court:
The court held that the insurance company failed to prove the existence of a valid insurance policy. The court found that the insurance policy produced by the insurance company was not a carbon copy or photostat copy of the original and had been prepared based on available material or particulars. The court also found that the cover note produced by the insurance company was not judicially proved.
Issues: 1. Whether the insurance company is liable for the entire amount of the award since it failed to prove the insurance policy? 2. Whether the compensation awarded by the tribunal is adequate?
Ratio Decidendi: 1. The burden of proof lies on the insurer to prove that its liability is limited to the extent provided in Section 95 of the Motor Vehicles Act, 1939. 2. The insurance company failed to discharge this burden by failing to produce the carbon copy or photostat copy of the original insurance policy or any relevant record of the policy. 3. Therefore, the insurance company is liable for the entire amount of the award.
Final Decision: The court dismissed the appeals filed by the insurance company and partly allowed the appeals filed by the claimants. The court held that the claimants were entitled to the entire amount of compensation awarded by the tribunal, with interest at the rate of 12% per annum from the date of filing of the claim petitions.
P. C. JAIN, J.
( 1 ) THESE appeals are directed against the Award dated 24-11-1993 passed by the learned Motor Accidents Claims Tribunal, Nagore whereby the learned Tribunal has awarded a sum of Rs. 2,74,000/- to the claimants of MACT Case Nos. 11/88[17/88new] and Rs. 1,50,000/- to the claimants of MACT Case No. 16/88[18/88 New].
( 2 ) THE brief facts of the case are that on 6-9-1987, a private Bus No. 5687 which was going from Jodhpur to Nagore collided with a Private Ambassador Car No. HPA 1281 coming from Nagore to Jodhpur. As a result of the above collision, the owner and driver of the said Ambassador Car Shri Majid Khan and one Shri Jagsingh (Jabarsingh) a passenger in that Ambassador car lost their lives. The said Bus was being driven by Driver Jorasingh and it was owned by respondent Jaswant Singh. The Bus was insured with United India Insurance Company, Jodhpur vide Cover No. 045737 with effect from 4-5-1987 to 3-5-1988. It is alleged that the above Bus was coming from Jodhpur to Nagore whereas the Car was going from Nagore to Jodhpur. A bus of the Rajasthan State Road Transport Corporation was proceeding ahead of the above Bus. The Bus Driver Jorasingh wanted to overtake the above Bus of Rajasthan State Road Transport Corporation and in that process, that Bus collided with the Ambassador Car, as a result of which, the Driver of the Car Shri Majid Khan and passenger Jabarsingh died after sustaining fatal injuries.
( 3 ) THE dependants of Owner and Driver of the Ambassador Car Shri Majid Khan viz. , Smt. Ronak Begum and others have filed Claim Petition No. 11/88 [17/88 New] whereas the dependants of passenger Shri Jabarsingh have filed Claim Petition No. 16/88 [18/88 New]. The claimants have alleged that the above accident occurred on account of the rash and negligent driving of his Bus by Driver Jorasingh which resulted in the death of Majid Khan and Jabarsingh. The claimants of Majid Khan and Jabarsingh claimed compensation to the tune of Rs. 5,46,000/- and Rupees 6,91,000/- respectively.
( 4 ) THE Bus Driver Jorasingh did not filed any reply to the claim petitions. However, the owner of the Bus namely, Jaswant Singh contested the claim petitions on the ground that the accident in fact occurred on account of rash and negligent driving of Majid Khan. The Driver of Rajasthan State Road Transport Corporation signalled the Driver of Bus to overtake the Bus. Therefore, he overtook his bus and in that process, all of a sudden, the Car appeared coming in front of the above Bus and that has resulted in collision. The Driver of the Car could have avoided the same.
( 5 ) IN the alternative, it is submitted that in case it is held that Driver Jorasingh was responsible for rash and negligent driving of the Bus, the Insurance Company may be saddled with liability as the Bus was comprehensively insured by the above Insurance Company.
( 6 ) THE United India Insurance Company also filed a reply to the claim petition and contested it on the ground that the claims submitted by the claimants are highly exaggerated. The maximum liability of the Insurance Company is Rupees 50,000/- only because the Bus was a passenger vehicle. It was also averred that the accident occurred on account of the rash and negligent driving of the Car by Majid Khan. It was also contended that at the relevant time, Driver of the Bus Jorasingh was not having a valid driving licence and, therefore, he was not competent to drive the above Bus. However, since Jorasingh had driven the above Bus without any licence, he breached the relevant condition of the Insurance policy and thus, the Insurance Company cannot be held responsible for this accident.
( 7 ) ON the pleadings of the parties, the learned Motor Accident Claims Tribunal framed as many as 12 Issues. The learned Tribunal vide its Award dated 24-11-1993 awarded a sum of Rupees 2,73,000/- in favour of the claimants of Claim Petition No. 11/88 [17/88 New] and Rs. 2,74,000/- in favour of the claimant
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