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1986 Supreme(Raj) 657
RAJASTHAN HIGH COURT AT JAIPUR BENCH
Guman Mal Lodha, J.
Santosh Rani and anr. - Appellant
Versus
Sheela Rani and ors. - Respondent
S.B. Misc. Appeal Nos. 3, 12 and 25 of 1983.
Decided On : 3-09-1986
The liability of an insurance company under a motor vehicle insurance policy continues despite the transfer of the vehicle, unless the policy is cancelled or the premium for the period after the transfer is refunded.
Headnote:
MOTOR VEHICLES ACT - SECTION 110-B - INSURANCE - LIABILITY OF INSURANCE COMPANY - TRANSFER OF VEHICLE - EFFECT - LIABILITY OF INSURANCE COMPANY CONTINUES DESPITE TRANSFER UNLESS POLICY CANCELLED OR PREMIUM REFUNDED.
Fact of the Case:
A fatal accident occurred involving a car and an auto cycle. The deceased's family filed a claim petition against the car owner, the driver, and the insurance company. The insurance company denied liability, claiming that the policy had lapsed due to the transfer of the vehicle to a new owner. The Tribunal found the insurance company liable and awarded compensation to the claimants.
Finding of the Court:
The court held that the insurance company's liability continued despite the transfer of the vehicle, as the policy had not been cancelled and the premium for the period after the alleged transfer had not been refunded. The court also held that the amount of compensation awarded by the Tribunal was inadequate and increased it.
Issues: 1. Whether the insurance company was liable to indemnify the new owner of the vehicle for the accident that occurred after the transfer. 2. Whether the amount of compensation awarded by the Tribunal was adequate.
Ratio Decidendi: 1. The court held that the insurance company's liability continued despite the transfer of the vehicle, as the policy had not been cancelled and the premium for the period after the alleged transfer had not been refunded. The court relied on the provisions of Section 110-B of the Motor Vehicles Act and the judgments of the Supreme Court and the Andhra Pradesh High Court. 2. The court held that the amount of compensation awarded by the Tribunal was inadequate and increased it, considering the deceased's income, the dependency of the claimants, and the loss of love and affection.
Final Decision: The court increased the amount of compensation awarded by the Tribunal and directed the insurance company to pay the entire amount. The court also awarded interest on the compensation amount at the rate of 12% from the date of the application to the date of realization.
"It is, therefore prayed that the Hon'ble Court may kindly be pleased to accept this appeal, and to quash and set aside the award passed against the appellant dated 18-10-1982 of the Motor Accidents Claims Tribunal, Jaipur in case No. 291 of 1977 or such orders as this Hon'ble Court deems fit and proper in the circumstances of the case may kindly be passed.
This Hon'ble Court may be further pleased to award costs to the appellant."
"It is therefore humbly prayed -
(i) That your Lordships would be graciously pleased to admit and accept this appeal.
(ii) That the record of the case be called for and an award for a sum of Rs. 2,50,000/- be passed in favour of the appellants.
(iii) That the interest on the award from the date of filing the claim petition i.e. 3-11-77 be also allowed to the humble applicant-appellants,
And
Any other order, direction or relief, which your Lordships deem proper, in the circumstances of the case, be also granted in favour of the appellants along with the costs throughout."
"It is therefore prayed that the appeal of the appellants may kindly be accepted and the award and judgment dated 18th October, 1982 passed by the Tribunal be quashed and set aside and the claim petition submitted by the Claimant-respondents No. 1 to 3 may kindly be dismissed with costs in toto.
Any other appropriate order which may be considered just and proper in the facts and circumstances of the case may kindly be passed."
