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IN THE HIGH COURT OF JUDICATURE AT MADRAS
C.Saravanan, J.
National Insurance Company Limited - Appellant
Versus
Nandhini and ors. – Respondents
C.M.A.No.1673 Of 2020 And C.M.P.No.12318 Of 2020
Decided On : 28-04-2021
Motor Vehicles Act, 1988 - Section 163-A - IRDA Act 1999 - Section 14(2)(i) - Cum-driver meeting an accident - Liability that can be fastened in case of a death of the owner - Appellant Insurance Company has filed this appeal primarily on the ground that the claim petition was filed under Section 163-A of the Motor Vehicles Act, 1988 by the dependents of the deceased who was a tortfeasor himself and therefore, liability cannot be fixed on the appellant Insurance Company under the policy. It is submitted that at best, as per Ex.R3 Insurance Policy, the liability that can be fastened in case of a death of the owner-cum-driver meeting an accident could be limited to Rupees one lakh in a case of P.A. cover. In this connection, a reliance was placed on the decision of the Hon'ble Supreme Court - learned counsel for the appellant Insurance Company further submits that pursuant to the directions and observations of this Court in United India Insurance – Held, Appellant Insurance Company is also entitled to refund the amount deposited in excess of the amount of compensation of Rs.1,00,000/-, if any, together with interest thereon, by filing suitable application before the Tribunal - respondents are entitled to the compensation in the same proportion awarded by the Tribunal - First and fourth respondents are permitted to withdraw their respective shares together with interest, less any amount already withdrawn by them, by filing suitable application before the Tribunal - Nationalised Bank under reinvestment scheme till they attain the age of majority - First respondent, who is the guardian of minors, is permitted to withdraw the accrued interest from the minor’s deposit once in three months directly from the said Bank. On attaining majority, second and third respondents are to be permitted to withdraw their share, by filing suitable application before the Tribunal - Civil Miscellaneous Appeal is partly allowed
JUDGMENT :
Though the notice has been served on the respondents, there is no representation on behalf of them.
2. Insurance Company is the appellant in this Civil Miscellaneous Appeal. It is aggrieved by the impugned Judgment and Decree dated 19.02.2020 passed by the Motor Accidents Claims Tribunal (Special District Court for Motor Accident Claims Cases, Krishnagiri), Krishnagiri in M.C.O.P.No.533 of 2019.
3. By the impugned Judgment and Decree dated 19.02.2020, the Tribunal has awarded a sum of Rs.5,11,366/- as compensation together with interest at 7.5% per annum from the date of claim petition till the date of deposit to the respondents.
4. The appellant Insurance Company has filed this appeal primarily on the ground that the claim petition was filed under Section 163-A of the Motor Vehicles Act, 1988 by the dependents of the deceased who was a tortfeasor himself and therefore, liability cannot be fixed on the appellant Insurance Company under the policy. It is submitted that at best, as per Ex.R3 Insurance Policy, the liability that can be fastened in case of a death of the owner-cum-driver meeting an accident could be limited to Rupees one lakh in a case of P.A. cover. In this connection, a reliance was placed on the decision of the Hon'ble Supreme Court in National Insurance Company Limited Vs. Ashalata Bhowmik and Others, 2018 (9) SCC 801 : 2018 (2) TN MAC 286 (SC).
5. The learned counsel for the appellant Insurance Company further submits that pursuant to the directions and observations of this Court in United India Insurance Co. Ltd. Vs. R.Rekha and Others in C.M.A.No.1428 of 2017 vide its Judgment dated 26.10.2017, IRDAI has also issued a Circular dated 20.09.2018 bearing reference No. IRDAI/NL/CIR/MOTP/158/09/2018, wherein, it has been clarified as follows:-
(i) All General Insurers carrying on motor insurance business shall provide CPA Cover for Owner-Driver under Liability Only, under Section III of Package Policies to all classes of vehicles and Bundled Covers wherever applicable.
(ii) A minimum Capital Sum Insured (CSI) of Rs.15,00,000/- shall be provided under CPA Cover for Owner-Driver under Liability Only, under Section III of Package Policies to all classes of vehicles and Bundled Covers wherever applicable at the premium rate of Rs. 750/- per annum for annual policy. This rate will be valid until further notice.
(iii) A higher CSI may be provided over and above Rs.15,00,000/- through Optional Covers under Liability Only and under Section III of Package Policies/ Bundled Covers on payment of additional premium at the option of the Insured.
(iv) In view of the above changes, the current Add on covers offering enhanced CPA Cover for Owner-Driver under Section III of Package Policies and Bundled Covers up to CSI of Rs.15,00,000/- shall stand withdrawn. However, Insurers willing to offer CSI over and above Rs.15,00,000/- may revise/file Add on cover under Liability only, Package Policies and Bundled Covers. It is suggested the higher CSI in such Add on cover may be in multiples of Rs.1,00,000/-. or Rs.5,00,000/-.
(v). As regards premium payable for CPA cover under long term motor policies, insurers may price them in line with their current approach for pricing. Should the Authority find the pricing approach in variance from their general pricing philosophy/approach and not in line with actuarial principles, suitable direction may be issued by the Authority. Insurers may start issuing such covers effective from the date of receipt of this circular even while ensuring that the filing for these is done under File and Use Guidelines on or before 25
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