IN THE HIGH COURT OF JHARKHAND AT RANCHI
Arun Kumar Rai, J.
National Insurance Company Limited - Appellant
Versus
Usha Devi wife of Late Satrughan Sharma and ors. - Opposite party
M.A. No. 271 of 2016
Decided On : 31-07-2025
| Table of Content |
|---|
| 1. circumstances surrounding the fatal accident. (Para 3 , 4 , 5 , 6) |
| 2. insurance company's liability and relevant case law. (Para 8 , 9 , 10) |
| 3. analysis of tribunal's findings and ongoing inquiries. (Para 11 , 12 , 13 , 14 , 15 , 16 , 17) |
| 4. affirmation of tribunal's award and compliance directives. (Para 18 , 19 , 20 , 21) |
JUDGMENT :
Arun Kumar Rai, J.
1. Heard Mr. Amaresh Kumar, learned counsel appearing on behalf of the appellant and Mr. Jitesh Kumar, learned counsel for the respondent no.1 (claimant).
2. The instant Miscellaneous Appeal has been preferred on behalf of appellant-The National Insurance Company Ltd., against the award dated 06.01.2016 passed in Compensation Case No. 67 of 2013, whereby the District Judge III-cum- Motor Vehicles Accident Claim Tribunal, Jamshedpur has allowed the application filed under Section 140 of MOTOR VEHICLES ACT , 1988 (in short, M.V. Act) and awarded compensation of Rs 50,000/- to be paid within 30 days and in case of failure to do so interest @ 12% from the date of award till realization.
Factual matrix of the case
3. Brief facts of the case are that, the deceased Satrughan Sharma was an ex-employee of the Tata Steel. On 11.08.2010 at about 12:00 noon while he was going towards Ghatshila from his Hero Honda Motorcycle bearing registration no. JH05 AA 2390 from his house, an unknown car, being driven in a rash and negligent manner, hit him, causing him to suffer serious injuries. Deceased was brought to T.M.H. hospital and during the treatment he succumbed to injuries.
4. On the basis of fardbeyan of informant, an F.I.R. has been registered at MGM (Mango) Police Station being P.S. Case no.342/2010 dated 17.08.2010 under Sections 278 /304-A of IPC against driver of unknown vehicle. During investigation, Maruti car bearing registration no. BR 16A/0040 was identified as offending vehicle.
5. An application under Section 140 of M.V. Act has been filed before the Motor Vehicles Accident Claim Tribunal, Jamshedpur for interim compensation by the dependents of deceased against owner of offending car, driver of the said car and appellant- Insurance Company being insurer of the Hero Honda motorcycle bearing registration no. JH05AA 2390 which was being driven by the deceased.
6. Record of the Tribunal reveals that, certified copy of the F.I.R., death certificate of the deceased, certificate of registration of Hero Honda motorcycle bearing registration no. JH05AA 2390, post mortem report of the deceased and the insurance policy of Hero Honda motorcycle bearing registration no. JH05AA 2390 have been brought on record by the dependents of the deceased.
7. After considering the materials available on record, learned Tribunal passed the award dated 06.01.2016 directing the appellant-Insurance Company to pay Rs. 50,000/- as interim compensation under Section 140 of M.V. Act.
8. Learned counsel for the Insurance Company vehemently argued that it is claimant’s case that, it is the fault of Maruti car on account of which accident took place which resulted into the death of Satrughan Sharma and learned Tribunal has despite directing the insurer or owner of Maruti car asked the insurance company of the motorcycle bearing registration no. JH05AA 2390 to pay Rs.50,000/- which is erroneous and not in consonance with law in view of judgment of Hon’ble Supreme Court in “ Ramkhiladi and another vs. United India Insurance Company and another ” reported in (2020) 2 SCC 550 , as the deceased is not the third party and he is second party. While arguing the matter, learned counsel further submitted that no liability of insurance company would arise under Section 147 of M.V. Act, but has very fairly conceded that as per insurance policy, the deceased is entitled for Rs.1 Lac as Personal Accident cover was there which makes entitlement of the driver/owner for Rs.1 Lac in case of death, but not under M.V. Act rather, claimant ought to have approached consumer forum for the same.
9. Per contra, learned counse
Ramkhiladi and another vs. United India Insurance Company and another
The Motor Vehicles Act mandates that interim compensation must be awarded to dependents without regard to the deceased's third-party status, affirming its welfare-oriented purpose.
Liability of the insurance company under Section 163A of the Motor Vehicle Act, 1988 is determined by the principle of no fault liability and the terms and conditions of the insurance policy.
Insurers are not liable for bodily injuries to vehicle owners under Section 147 of the Motor Vehicle Act; thus, claims under Section 163A cannot be entertained if the owner is also a claimant.
Heirs of deceased borrower-driver cannot claim under Section 163A MV Act against owner/insurer of borrowed vehicle as deceased not third party but in owner's shoes; insurer liable only per personal a....
A borrower of a vehicle is entitled to personal accident coverage under the insurance policy, despite not being the owner.
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