The liability of an insurance company to pay compensation to the owner-driver of a vehicle involved in an accident is limited to the amount specified in the insurance policy.

2023:PHHC:159056

FAO-6984-2015(O&M)

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IN THE HIGH COURT OF PUNJAB AND HARYANA

AT CHANDIGARH

FAO-6984-2015(O&M)

Date of Decision: 08.12.2023

Oriental Insurance Company Ltd.

....Appellant

Versus

Usha Rani and Ors.

...Respondents

CORAM:- HON'BLE MS. JUSTICE AMARJOT BHATTI

Present:-

Mr. R.C.Gupta, Advocate

for the appellant-insurance company.

Mr. Amarjit Singh Virk, Advocate for the respondents.

*****

AMARJOT BHATTI, J.

1.

The appellant-insurance company has filed the present appeal

against impugned award dated 16.07.2015 passed by learned Motor

Accident Claims Tribunal, Kurukshetra vide which the claim petition filed

by the claimants/respondents No.1 to 3 seeking compensation on account

of death of Surinder Kumar in a motor vehicular accident under Section

163-A of Motor Vehicles Act, 1988 was allowed and the claimants were

granted compensation to the tune of Rs.4,05,000/-.

2.

The facts of the case are that Usha Rani, her minor sons

namely Jitender Kumar and Parmod Kumar through their mother being

their next friend and natural guardian filed claim petition under Section

163-A of Motor Vehicles Act, 1988. As per the facts, Surinder Kumar was

44 years old at the time of accident and he was working as driver on a

three-wheeler. His monthly income was mentioned as Rs.3,300/- per

month. On the fateful date of 19//20.04.2014 at about 12:30 AM the author

Sunil Devi

2023.12.12 15:50

I attest to the accuracy and

integrity of this document

2023:PHHC:159056

FAO-6984-2015(O&M)

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of the FIR was going from Pipli to his house in Sham Colony on a three-

wheeler. His brother Surinder Kumar was going ahead on other three-

wheeler bearing No.HR-65-4828. He was also going towards Sham

Colony and when he reached in front of H.P.Petrol Pump, the said three-

wheeler driven by his brother got imbalanced and turned turtle. In this

accident his brother Surinder Kumar received head injury and other

injuries on his body. The police was informed, his brother was taken to

LNJP Hospital, Kurukshetra from where he was referred to PGI,

Chandigarh and ultimately, he succumbed to the injuries on his way to

PGI, Chandigarh. Regarding this accident DDR was lodged at Police

Station Sadar Thanesar on 20.04.2014. The claimants claimed

compensation to the tune of Rs.10,00,000/- from the respondents along

with interest @ 18% per annum with costs.

3.

Notice of the claim petition was given to the respondents.

The respondent No.1 filed his written statement admitting the claim of

claimants whereas the insurance company filed separate written statement

taking preliminary objection that a false claim petition has been filed by

the claimants in collusion with respondent No.1 to grab compensation.

The claim petition is not maintainable, the claimants have no locus standi

to file this claim petition and they are estopped by their own act and

conduct from filing this case. The driver of said three-wheeler bearing

registration No.HR-65-4828 was not holding a valid driving license. It

was being driven in contravention of the terms and conditions of insurance

policy. There was no compliance of Section 158(6) of Motor Vehicle Act.

In case the claimants were found entitled to get compensation then they

cannot be granted interest more than 5% per annum. On merits, the facts

Sunil Devi

2023.12.12 15:50

I attest to the accuracy and

integrity of this document

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FAO-6984-2015(O&M)

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were denied. It was further alleged that the deceased was not working as a

driver, his income was also wrongly reflected in the claim petition. No

accident took place as alleged in the claim petition and a false DDR No.33

dated 20.04.2014 was lodged by the police in connivance with the

claimants to grab compensation. Denying all the facts in the petition it

was prayed that claim petition may kindly be dismissed with costs.

4.

From the pleadings of the parties, following issues were

framed by the Tribunal on 29.