Allowed

Brijbihari and Another v. Oriental Insurance Co. Ltd. through Branch Manager and Another

Allahabad HC27 Jan 2021FAFO/395/2020

Case brief

AI extract

What is this about?

In this first appeal, the Single Judge held that the Motor Accident Claims Tribunal erred by not awarding Rs. 2 lakhs to the owner-driver under Section 163-A of the Motor Vehicle Act despite accepting the liability. The appeal was allowed and the Tribunal was directed to award the sum with interest.

What did the court decide?

Appellants are entitled to Rs. 2 lakhs from the insurer with interest at 7% from the date of filing the claim petition.

Brijbihari and Another Vs Oriental Insurance Co. Ltd. through… — Insurance | Allahabad HC (2021)

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Court No. - 1

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Case :- FIRST APPEAL FROM ORDER No. - 395 of 2020

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Appellant :- Brijbihari And Another Respondent :- Oriental Insurance Co. Ltd. Through Branch Manager And Another Counsel for Appellant :- Santosh Kumar Shukla,Akhileshwar Pratap Singh Counsel for Respondent :- Rahul Sahai

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Hon'ble Vivek Agarwal,J.

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Sri S.K. Shukla, learned counsel for the appellant. Sri Rahul Sahai, learned counsel for the respondent.

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This appeal has been filed by the claimants being aggrieved of award dated 5.10.2019 passed by learned Motor Accident Claims Tribunal/ Additional District Judge, Court No. 11, Budaun in MACP No. 06 of 2017 on the ground that learned Claims Tribunal has though accepted that owner-driver was covered under the insurance policy to the extent of Rs. 2,00,000/- amount admissible in the present accident covering owner-driver, yet the Tribunal has erred in not awarding this sum of Rs. 2,00,000/- which is admissible to the claimants in claim petition under section 163-A of Motor Vehicle Act.

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It is submitted that the Supreme Court in case of Oriental Insurance Company Ltd Vs. Rajni Devi and others; (2008) 5 SCC 736 held that owner of the vehicle can claim provided for a present accident, insurance has been taken out. It is submitted that it has been further held in case where third party is involved, the liability of the Insurance Company would be unlimited. However, compensation in regard to claim for the death of owner or any passenger of the vehicle, the contract of the Insurance Company will be governed by contract between the Insurance Company and the owner of the motor vehicle as per terms mentioned therein.

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There is no dispute as has been admitted by learned Claims Tribunal that police covers upto Rs. 2 lakhs for driver/owner of the vehicle. Therefore, in place of relegating the claimants to approach the Insurance Company to obtain that amount, Tribunal could have awarded this amount. This award needs to be modified and is modified.

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It is directed that claimants will be entitled to a sum of Rs. 2 lakhs from respondent no. 1, insurer of vehicle No. UP 24T/2995 alongwith interest at the rate of 7% from the date of

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filing of the claim petition.

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In view of above terms, the appeal is disposed of.

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Order Date :- 27.1.2021 S.K.S.

Brijbihari and Another v. Oriental Insurance Co. Ltd. through Branch Manager and Another

Case brief

What is this about?

What did the court decide?

Brijbihari and Another v. Oriental Insurance Co. Ltd. through Branch Manager and Another

Case brief

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What did the court decide?

What the court decided

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