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1991 Supreme(MP) 411

I (1992) ACC 313, 1992 ACJ 873, 1993 76 CompCas 100 MP
R.K. Verma
National Insurance Co. Ltd.
vs
Shabirkhan And Ors.
Decided On : 16 September, 1991

The insurance company is jointly and severally liable with the owner of the vehicle for no-fault liability under Section 92A of the Motor Vehicles Act, 1939, and is required to pay the amount of interim compensation to the claimants forthwith. The Tribunal has the jurisdiction to make an interim award against the insurance company without inquiring into or recording a finding on the objections raised by the insurance company regarding its liability.

Headnote:

MOTOR VEHICLES ACT - SECTION 92A - INTERIM COMPENSATION - LIABILITY OF INSURANCE COMPANY - INSURANCE COMPANY IS JOINTLY AND SEVERALLY LIABLE WITH THE OWNER OF THE VEHICLE FOR NO-FAULT LIABILITY UNDER SECTION 92A, REQUIRING THE INSURANCE COMPANY TO PAY THE AMOUNT OF INTERIM COMPENSATION TO THE CLAIMANTS FORTHWITH.

Fact of the Case:

In a marriage party, a truck carrying 60-70 people, including women and children, toppled down due to rash and negligent driving, resulting in the death of several passengers and injuries to others. The legal representatives of the deceased and the injured claimant filed claim petitions under Section 92A of the Motor Vehicles Act, 1939, seeking interim compensation on the principle of "no-fault liability." The Tribunal awarded interim compensation against the owner-driver and the insurance company.

Finding of the Court:

The court held that the insurance company is jointly and severally liable with the owner of the vehicle for no-fault liability under Section 92A of the Motor Vehicles Act, 1939, and is required to pay the amount of interim compensation to the claimants forthwith. The court further held that the Tribunal has the jurisdiction to make an interim award against the insurance company without inquiring into or recording a finding on the objections raised by the insurance company regarding its liability.

Issues: 1. Whether the insurance company is liable for the interim compensation awarded under Section 92A of the Motor Vehicles Act, 1939, in respect of the death and injuries caused to the passengers travelling in the truck? 2. Whether the Tribunal can make an interim award against the insurance company without inquiring into or recording a finding on the objections raised by the insurance company regarding its liability?

Ratio Decidendi: 1. The liability required to be statutorily covered in a policy of insurance as per Section 95 of the Motor Vehicles Act, 1939, includes the liability arising under Section 92A of the Act. 2. The purpose of Section 92A(1) and 92B(2) of the Act is to provide social security against motor accidents and to make available an interim relief urgently to the injured person or in case of death by accident to the members of the family of the deceased. This purpose would be defeated if the Tribunal were to be invited at the stage of interim award to decide contested questions of fact and law. 3. The controversy as to liability of the insured and insurance inter se should not be allowed to hamper the making of an interim award since it can appropriately be deferred to be decided on completion of the trial by the Tribunal.

Final Decision: The court dismissed the appeal filed by the insurance company, holding that the impugned interim awards cannot be said to be illegal or unreasonable so as to call for interference.

JUDGMENT

R.K. Verma, J.

1. This order shall also govern the disposal of M.A. No. 262 of 1989 (National Insurance Co. Ltd, v. Nisar Khan and Anr.), M. A. No. 263 of 1989 (National Insurance Co. Ltd. v. Mohd. Ishaq and Anr.), M. A. No. 264 of 1989 (National Insurance Co. Ltd. v. Razzak Khan and Anr.), M. A. No. 265 of 1989 (National Insurance Co. Ltd. v. Kale Khan and Ors.), M. A. No. 267 of 1989 (National Insurance Co. Ltd. v. Kale Khan and Ors.), M. A. No. 268 of 1989 (National Insurance Co. Ltd. v. Ayyub Beg and Anr.), M. A. No. 269 of 1989 (National Insurance Co. Ltd. v. Sheikh Amin and Ors.), M. A. No. 270 of 1989 (National Insurance Co. Ltd. v. Bismillah and Ors.), and M. A. No. 266 of 1989 (National Insurance Co. Ltd. v, Jahid Hussain and Anr.).

2. This appeal as also the connected Appeals Nos. 262 to 270 of 1989 are filed by the insurance company against accident claims interim award dated June 29, 1989, made by the Motor Accidents Claims Tribunal, Garoth, in Claim Cases Nos. 16 of 1986, 19 of 1986, 17 of 1986, 24 of 1986, 22 of 1986, 25 of 1986, 18 of 1986, 23 of 1986. and 21 of 1986 and 15 of 1986, respectively, whereby an interim compensation of Rs. 15,000 under Section 92A of the Motor Vehicles Act, 1939 (hereinafter referred to as " the Act"), has been awarded in respect of the death of each of the deceased persons, viz., Salmabai, w/o Shabirkhan, Sabanabai, d/o Nisarkhan, Chhotibai, w/o Ishaq, Shahirbai, d/o Abdul Razzaq, Faridabanoo, w/o Sabuddin, Sahabuddin, s/o Kale Khan, Rahimanbai, w/o Alam Khan, Seikh Salim, s/o Seikh Amin, Rahim Baksh, s/o Kesamji and an interim compensation of Rs. 7,500 under Section 92A of the Act has been awarded in respect of the injuries sustained by the injured claimant, Jahid Hussain.

3. Ohe facts giving rise to this appeal, as per the claim petition, are as follows :

In the night of May 14, 1985, the marriage party of Sabbir consisting of 60 to 70 persons including ladies and minor children was returning after marriage from Neemuch to Shamgarh in truck No. C. P. U. 5169 and, while the truck was passing through Sangram Ghat, it toppled down due to rash and negligent driving of the driver-owner of the truck. As a result of this accident, the passengers in the truck sustained serious injuries and many of them succumbed to the injuries. On claim petitions having been filed by the respective legal representatives of the above-named deceased persons and the claimant injured, Jahid Hussain, and a petition under Section 92A of the Act having been moved in each case, for interim compensation on the principle of" no-fault liability " the learned Tribunal awarded interim compensation of Rs. 15,000 in respect of the death of each of the above-named deceased persons and Rs. 7,500 in respect of the injuries sustained by the claimant-injured.

4. The award of compensation under Section 92A of the Act has been made against the owner-driver, Shafi Mohd., as well as the appellant-insurer with whom the offending truck stood insured during the material time on the view taken by the Tribunal that both the insured and the insurer are jointly and severally liable to pay the interim compensation.

5. Being aggrieved by the award made against the appellant-insurance company, it has filed these appeals.

6. The main contention of the appellant-insurance company is that the learned Tribunal has committed an error in not considering the fact that risk of passengers travelling in a truck, i.e., a goods vehicle, is not required to be covered under Section 95 of the Act nor the policy of insurance covered it. As such, no liability attaches to the appellant-insurance company.

7. Section 92A(1) of the Act provides for liability of the owner of the vehicle involved in the accident, to pay compensation in respect of the death or permanent disablement of any person caused in the accident arising out of the use of the motor vehicle on the principle of no-fault liability. A claim for compensation on the principle of" no fault" liabi








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