IMPORTANT POINT
Accident-Claim Petition – Borrower of a vehicle cannot claim compensation u/s 163-A of M.V. Act.

AVNEESH JHINGAN, J.

1. The present appeal arises from award dated 03.09.2014 passed by Motor Accident Claims Tribunal, Fatehgarh Sahib (for short, 'the Tribunal').

2. The appeal involves following question of law:-

Whether borrower of a vehicle can claim compensation under Section 163-A of the Motor Vehicles Act, 1988 (for short, ‘the Act')?

3. For deciding the appeal, it would be appropriate to consider the question :-

Whether the Personal Accident Cover (for short, ‘PAC') issued on payment of additional premium will cover the owner of the vehicle who is driving the vehicle or other person including the borrower of the vehicle?

4. Bare facts necessary for adjudication of the appeal are that on 28/29.10.2013 Gurdeep Singh along with Ramakant was returning from Jodhpur by car bearing registration No. PB-23K-6932 (for short, 'the Car'). Gurdeep Singh was driving the Car. On reaching near turning of Petrol Pump, Bassi Pathana the car turned turtle as a result of which Gurdeep Singh died at the spot and Ramakant suffered injuries. DDR No. 14 dated 29.10.2013 was lodged at Police Station Bassi Pathana.

5. A claim petition by legal heirs of the deceased was filed under Section 163-A of the Motor Vehicles Act, 1988 (for short, 'the Act'). In the claim petition, it was claimed that the deceased was working as a driver of Avtar Singh the owner of the Car. The claimants failed to prove that Avtar Singh had employed the deceased as a driver. The Tribunal assessed the earning of the deceased as Rs.3300/- per month and awarded a sum of Rs.3,58,400/- as compensation along with interest @7% per annum.

6. The insurer has filed this appeal being aggrieved of the impugned award submitting that borrower of the vehicle would not be entitled to any compensation either under Section 163(A) of the Act or under PAC.

7. The issue that the borrower of a vehicle would not be entitled to compensation under Section 163-A of the Act is no longer res integra. Supreme Court in Ningamma & Anr. Vs. United India Insurance Co. Ltd., 2009(13) SCC 710 held that borrower of Vehicle will not be entitled to claim compensation under Section 163-A.

Supreme Court held:-

“13. In the light of the aforesaid submissions, the question that falls for our consideration is whether the legal representatives of a person, who was driving a motor vehicle, after borrowing it from the real owner meets with an accident without involving any other vehicle, would be entitled to compensation under Section 163-A of MVA or under any other provisions of law and also whether the insurer who issued the insurance policy would be bound to indemnify the deceased or his legal representatives?”

The issue was decided and it was held as under :-

“19. We have already extracted Section 163-A of the MVA hereinbefore. A bare perusal of the said provision would make it explicitly clear that persons like the deceased in the present case would step into the shoes of the owner of the vehicle. In a case wherein the victim died or where he was permanently disabled due to an accident arising out of the aforesaid motor vehicle in that event the liability to make payment of the compensation is on the insurance company or the owner, as the case may be as provided under Section 163-A. But if it is proved that the driver is the owner of the motor vehicle, in that case the owner could not himself be a recipient of compensation as the liability to pay the same is on him. This proposition is absolutely clear on a reading of Section 163-A of the MVA. Accordingly, the legal representatives of the deceased who have stepped into the shoes of the owner of the motor vehicle could not have claimed compensation under Section 163-A of the MVA.”

8. It would be appropriate at this stage to quote Sections 140 and 163-A of the Act and GR-36.

“140. Liability to pay compensation in certain cases on the principle of no fault –

(1) Where death or permanent disablement of any person has resulted from an accident arising out of the use of a m