IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Harpreet Singh Brar, J.
Oriental Insurance Company Limited Jind – Appellant
Versus
Manjit Kaur & Ors. – Respondents
F.A.O. No. 405 of 2016
Decided On : 02-06-2023
| Table of Content |
|---|
| 1. circumstances of the accident and initial compensation details. (Para 4 , 5 , 6) |
| 2. arguments regarding insurance coverage and compensation assessment. (Para 7 , 8 , 9) |
| 3. liability of insurance company as it pertains to gratuitous passengers. (Para 11 , 12 , 13 , 14 , 15 , 16) |
| 4. court's analysis of the powers under order 41 rule 33 to provide just outcomes. (Para 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26) |
| 5. final award of compensation and its calculation. (Para 27 , 28 , 29 , 30) |
Judgment
New Page 1Mr. Harpreet Singh Brar, J.
The Insurance Company through instant appeal bearing FAO No.405 of 2016 is seeking setting aside of the award dated 28.10.2015 passed by Motor Accidents Claim Tribunal, Panipat (in short ‘Tribunal’).
2. The claimant through instant appeal bearing FAO No.4548 of 2016 seeking enhancement of the compensation awarded vide award dated 28.10.2015 passed by the said Tribunal.
3. Both the appeals are arising out of the same award, therefore, both are being heard together and decided through a common judgment.
FACTUAL BACKGROUND
4. Brief facts of the present case are that on 16.02.2012 at about 5:00 PM, Sonu @ Mangat Singh son of Sukhvinder Singh @ Sukha, left for village Bharkhera, District Bundi, (Rajasthan) from village Faridpur, District Panipat. At about 11:30 PM, they reached Jhajjar bypass where they took lift in a Canter (hereinafter ‘offending vehicle’) bearing Registration No.HR-46B-3821 going to Rewari. The driver of the said vehicle was driving the offending vehicle at a high speed, rashly and negligently, despite the request of the deceased and his co-passenger-Jaspal to drive at a moderate speed. At about 12:15 AM, when they reached village Machhrauli, the driver hit a truck preceding them, due to which, front cabin of the offending vehicle was broken and the deceased-Sonu @ Mangat Singh succumbed to the injuries sustained in the accident.
5. The learned Tribunal has framed the following issues:
1. Whether deceased Sonu died in Motor Vehicles accident due to the rash and negligent driving of respondent No.1 of the vehicle bearing registration No.HR-46B-3821?OPP
2. Whether the claimants are entitled to be compensated by the respondents on account of death of deceased in the motor vehicle accident, if Yes, how much and from whom? OPP
3. Whether the respondent No.1 has infringed the conditions of the insurance policy, if so, what its effect? OPR
4. Relief.
6. Learned Tribunal after adjudicating on different issues held that the claimant-Manjeet Kaur is entitled to grant of compensation of a sum of Rs.6,21,000/- on account of death of Sonu @ Mangat Singh. Claimant-Manjeet Kaur shall be further entitled to interest @ 7.5% per annum on the amount of compensation, if the amount is deposited within a period of two months from the date of passing of the award, failing which, respondents shall be liable to pay interest @ 9% per annum on the amount of compensation till its realization.
CONTENTIONS
7. Learned counsel for the Insurance Company has contended that the deceased-Sonu @ Mangat Singh was a gratuitous passenger and he is not covered by the Insurance Policy as the vehicle was registered as a ‘goods vehicle’ and was not supposed to be carrying passengers and has relied upon judgment of the Hon’ble Supreme Court in Anu Bhanvara Etc. Vs. Iffco Tokio General Insurance Company Ltd. and others 2022 (2) SCC (Cri.) 121. Hence, for all intents and purposes, the Insurance Company cannot be held liable for the death of an unauthorized gratuitous passenger.
8. A submission has further been made that in such a case, the claim would only be maintainable against the driver and owner of the offending vehicle. The learned Tribunal has committed a grave irregularity by making Insurance Company and the owner of the offending vehicle jointly and severally liable to compensate the claimants. In this context, he has relied upon the judgment of this Court in Ajay Kumar and others Vs. Darshana Devi and others 2
Anu Bhanvara Etc. Vs. Iffco Tokio General Insurance Company Ltd. and others
Ajay Kumar and others Vs. Darshana Devi and others
Amrit Lal Sood and another Vs. Kaushalaya Devi Thapar and others
Rani Gupta and others Vs. United India Insurance Company Limited and others
Helen C. Rebello (Mrs.) and Others Vs. Maharashtra State Road Transport Corporation and another
K. Muthuswami Gounder Vs. N. Palaniappa Gounder
Pralhad Vs. State of Maharashtra
State of Punjab Vs. Bakshish Singh
National Insurance Company Limited Vs. Pranay Sethi and others
Smt. Sarla Verma and others Vs. Delhi Transport Corporation and another
The liability of the Insurance Company under a comprehensive/package policy is not limited to a specific amount, and the appellate court has the power to enhance compensation even in the absence of a....
The main legal point established in the judgment is that the Insurance Company cannot be held responsible for the compensation of unauthorized passengers in a goods vehicle when the risk is not cover....
Point of Law : Insurance Company was directed to pay compensation even for gratuitous passenger considering circumstances of this case under the “Doctrine of Pay and Recover” from the driver and owne....
The main legal point established in the judgment is that the insurance company is not liable to pay compensation for unauthorized passengers in goods vehicles, based on the interpretation of relevant....
The court established that compensation under Section 163A of the Motor Vehicles Act applies even when the victim is a gratuitous passenger, emphasizing the structured formula for calculating compens....
Amendment to Motor Vehicles Act, 1988 mandates insurers to cover liabilities for owners of goods traveling in goods vehicles, ensuring entitled compensation for injuries sustained.
Insurance companies may be required to pay compensation even if the deceased was an unauthorized passenger, with the right to recover from the vehicle owner, reflecting the benevolent intent of the M....
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