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2009 Supreme(Ori) 604
IN THE HIGH COURT OF ORISSA
B.K. Patel, J.
UNITED INDIA INSURANCE COMPANY LTD. BBSR - APPELLANT
Versus
ULLASH CHANDRA MOHARANA AND OTHERS - RESPONDENT
Decided On : 22-12-2009
The timing of insurance policy effectiveness and the requirement for specific pleading in the written statement are crucial in determining the liability of the insurance company.
Headnote:
Motor Vehicles Act - Insurance - 166 - The court discussed the insurance coverage of the offending vehicle, the timing of the insurance policy, and the liability of the insurance company. Key legal provisions such as the timing of insurance policy effectiveness and the requirement for specific pleading were highlighted and influenced the court's decision.
Fact of the Case:
The appeal was against an order awarding compensation for a motor vehicle accident under section 166 of the Motor Vehicles Act. The insurance company was held liable to pay compensation to the claimants for the death of the deceased in the accident.
Finding of the Court:
The court found that the insurance company was liable to pay compensation to the claimants based on the timing of the insurance policy and the lack of specific pleading in the written statement.
Issues: The issues revolved around the insurance coverage of the offending vehicle, the timing of the insurance policy, and the adequacy of pleading in the written statement.
Ratio Decidendi: The court emphasized the importance of specific pleading in the written statement and the timing of insurance policy effectiveness in determining the liability of the insurance company.
Final Decision: The appeal was dismissed, affirming the decision that the insurance company was liable to satisfy the award.
JUDGMENT :
B.K. Patel, J. - United India Insurance Company (for short 'the Insurance Company') is in appeal against the Order Dated 27.10.2000 u/s 166 of the Motor Vehicles Act (for short, the Act) passed by the Member, 3rd Motor Accident Claims Tribunal, Bhubaneswar in Misc. Case No. 334 of 1994 awarding compensation of Rs. 1,49,000 with interest ' 9% per annum from the date of filing of claim application i.e. 20.06.1994 till the date of passing of the award within two months failing which the interest would be payable till date of payment in favour of the claimants-Respondents 1 to 5 payable by the Insurance Company, on account of death of deceased Kishore Kumar Maharana in a motor vehicle accident involving the offending vehicle belonging to the Respondent No. 7 Respondent No. 6 was the previous owner of the offending vehicle. On consent the matter was taken up for disposal at the stage of admission.
2. The accident occurred at 10.30 A.M. on 16.3.1994 when the offending vehicle dashed against the scooter which the deceased was driving. It was categorically pleaded in the claim application that the offending vehicle bearing registration No. ORF-4598 was insured with the Appellant Insurance Company under Cover Note No. 264117 during the period of the accident.
3. Respondent No. 6 was set ex parte. Respondent No. 7 filed written statement admitting to have purchased the vehicle from Respondent No. 6. It was also admitted by him that the death of the deceased occurred due to the accident involving the offending vehicle belonging to him. With regard to the insurance of the offending vehicle with the Appellant Insurance Company it was pleaded as follows:
10. Thai, the vehicle of this O.P. has validly insured with O.P. No. 3 i.e., United India Insurance Co, Ltd. Mancheswar Branch, Cuttack Puri Road, Bhubaneswar.
11. That, this O.P. & O.P. No. 1 in whose name R.C. Book stands had gone to the said insurance branch office on 14.03.94 to discuss with its authority regarding the insurance of the vehicle. After discussion, the authority tell them to come on 15.3.94 with the vehicle & money. So the O.P. No. 2 & this O.P. again went to the said Branch Office on 15.3.94 with vehicle & money (cash) & gave the money to the said Insurance Company & O.P. No. 1 signed proposal form (paper for contract).
12. That after receiving money & physical verification of the vehicle by the said insurance authority, assured these O.Ps. for insurance of the vehicle & told them to come, after few days to take the insurance papers etc. as the process takes some days.
13. That, after assurance given by the said Insurance Authority the present O.P. allow its vehicle to run the vehicle on the morning of 16.3.94.
14. That, due to ill fate of the O.P. the vehicle met an accident on 16.3.94 at about 10.30 A.M.
15. That, after the accident the local police seized the vehicle immediately & ask this O.P. for production of papers of the vehicle.
16. That, as this O.P. has not received the insurance policy from the said Insurance Company, so he went to the Insurance Company on the same date of accident for the insurance policy & informed the said authority regarding the accident & for urgent need of the insurance policy, but the said company did not hand over the policy or cover note or money receipt to this O.P. & again said to come on 17.03.94. So this O.P. again came to the said insurance company on 17.3.94 & took the money receipt & cover note from the insurance company.
17. That, the time mentioned in the cover note by the said Insurance Company to avoid its liability which is not sustainable in the eye of law.
18. That, as the vehicle has validly insured with the O.P. No. 3 by signing proposal form covering the date of accident. Hence, OP. No. 3 is alone liable to pay the compensation in this case. (sic)
4. In the written statement filed by the Insurance Company the claim was resisted mainly on the ground that the claimants had not produced any document or evidence relating to
