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2022 Supreme(MP) 1060

IN THE HIGH COURT OF MADHYA PRADESH
Sunita Yadav, J.
Shankerlal – Appellant
Versus
Manoj Jatav – Respondent
Misc. Appeal No. 5833 of 2018
Decided On : 01-04-2022

Advocates Appeared:
Yash Sharma, Advocate, Ram Kishor Sharma, Advocate, Naresh Singh Tomar, Advocate

Headnote:(A) Motor Vehicles Act, 1988 - Section 173(1) - Compensation claim - The insurance company exonerated based on violation of policy terms; however, the court directed it to pay awarded compensation and recover from the driver and owner - Breach of policy does not affect third-party claimants. (Paras 1, 12, 13)

(B) Insurance contracts - The insurer must indemnify claimants unless a breach of policy is established without penalizing third parties; liability rests on the contract between the insured and insurer.

Facts of the case:
The appellants claimed compensation due to the death of Vetal Singh, who was killed in a motorcycle accident caused by a negligent truck driver. The insurance company contested liability citing policy violations.

Findings of Court:
The Claims Tribunal's compensation amount is maintained, but the Insurance Company is ordered to pay and recover from the insured.

Issues: Whether the Insurance Company can avoid liability based on policy violations and the treatment of third-party claimants.

Ratio Decidendi: The court ruled that claimants should not be penalized for policy breaches, emphasizing principles of indemnity while ensuring the insurer pays the compensation first.

Result: Appeal partially allowed.

Table of Content
1. accident details leading to compensation claim (Para 1 , 2 , 3 , 4)
2. parties' arguments regarding liability and compensation (Para 5 , 7 , 8 , 9)
3. court's reasoning on insurance liability (Para 10 , 12)
4. court's directive on compensation payment (Para 13)
5. disposition of the appeal (Para 14 , 15)

JUDGMENT

1. This Misc. Appeal under Sec. 173(1) of MOTOR VEHICLES ACT , 1988 has been filed against the award dtd. 03/11/2018 passed by Additional Motor Accident Claims Tribunal, Shivpuri (M.P.) in Claim Case No.09/2010, whereby the Insurance Company was exonerated from the liability of compensation.

2. The necessary facts for the disposal of the present appeal in short are that on 9/2/2010 deceased Vetal Singh was going to Kolaras from his village by the motor-cycle with his relative as they reached near of Gas Filer Godam A.B, Road PS Kolaras, at that time, one truck bearing registration No. HR-38-K-5255 which was coming rash and negligent manner dashed to the motor-cycle of deceased, due to which, he sustained grievous injuries in various ports of his body and died on spot.

3. First information report was lodged against the respondent No.1 driver of the offending vehicle in Police Station Kolaras Distt. Shivpuri (M.P.) registered at crime No.33/2010 under Ss. 337, 338, 304-A of IPC. After completion of investigation, charge sheet was filed before competent court against respondent No.1/driver.

4. For claiming compensation due to death of deceased- Vetal Singh on account of accident, appellants filed claim petition before learned Claims Tribunal against all the respondents stating therein that deceased Vetal Singh was doing the work of security guard and was earning as sum of Rs.7500.00 per month by which he used to maintain himself and his family members. Because of death on account of accident, appellants deprived all the facilities being provided by deceased and also be provided in future. Hence, appellants claimed Rs.11, 95, 000.00 before learned Claims Tribunal against all the respondents.

5. The respondents no.1 and 2 and respondent No.3/Insurance company appeared before the learned claims tribunal and filed their written statement and dined each and every contents made in the claim petition. Insurance company further stated in its written statement that at the time of accident, vehicle was being used in violation of terms and conditions of the insurance policy and without effective and valid driving license, Insurance Company prayed for dismissal the claim petition against the Insurance Company.

6. Claims Tribunal framed issues and recorded evidence produced by the parties and after hearing arguments, Tribunal allowed the claim petition vide award dtd. 12/01/2011 and awarded compensation a sum of Rs.5, 90, 000.00 with 7% interest per annum against all the respondents. Against the award dtd. 12/01/2011, Insurance Company filed appeal before this Court stating therein that at the time of accident, driver of the offending vehicle was not having valid and effective driving license to drive the vehicle. Insurance company also filed stay application as well as an application under Order 41 Rule 27 of CPC for taking some document on record. This Court granted stay, thereafter, remanded the matter back vide order dtd. 23/02/2018 to the Claims Tribunal for deciding the case on the basis of the documents and after giving of hearing. In compliance of order dtd. 23/02/2018, Claims tribunal afforded opportunity to both the parties for examination, cross-examination, thereafter, matter was finally heard. Claims Tribunal came to the conclusion that at the time of accident, vehicle in question was being driven in the violation of terms and condition of insurance policy and without effective and valid driving license, exonerated to the insurance company from the liability. Being aggrieved by the impugned award passed by the learned claims tribunal, this appeal has been preferred.

7. Learned counsel for the appellants sub

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