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Divisional Manager,Oriental Insurance Co.Ltd. v. N.Sailama

Orissa HC27 Oct 2022MACA/140/2019

Case brief

AI extract

What is this about?

Appellate court dismissed insurer's appeal against motor accident compensation order. Court held insurer liable as lack of regular driver with learner licence holder was not established by evidence, waiving default interest but ordering amount deposit within two months.

What did the court decide?

Insurer to deposit entire compensation amount with interest before tribunal within two months; default interest @8% waived; statutory deposit to be refunded upon proof of deposit.

Divisional Manager,Oriental Insurance Co.Ltd. Vs N.Sailama — Insurance | Orissa HC (2022)

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IN THE HIGH COURT OF ORISSA AT CUTTACK MACA No.140 of 2019

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The Divisional Manager, Oriental Insurance Company Ltd.

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…. Appellant

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Mr. P.K. Mahali, Advocate

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-versus-

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Smt. N. Sailama and Others …. Respondents

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Mr. S.B. Das, counsel for Respondents 1&2

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CORAM: SHRI JUSTICE B. P. ROUTRAY

ORDER

27.10.2022

Order No.

The matter is taken up through hybrid mode.

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Heard Mr. P.K. Mahali, learned counsel for the insurer - Appellant and Mr. S.B. Das, learned counsel for the claimant – Respondents 1&2.

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Present appeal by the insurer is against the impugned judgment dated 20^th November, 2018 of the learned Member, 2^nd MACT (Southern Division), Berhampur, Ganjam passed in MAC Case No.118 of 2013 (43/2011-GDC) wherein compensation to the tune of Rs.5,05,000/- along with interest @ 6% per annum from the date of filing of the claim application, i.e. 3^rd February, 2011 has been granted on account of death of deceased Rushia Patra @ N. Rushia in the motor vehicular accident dated 21^st August, 2010.

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Mr. Mahali contends on behalf of the insurer that the owner of the offending motor cycle was the driver and despite having learner’s

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licence he did not take with him a regular driver and as such violated the policy condition. Therefore, the insurer is not liable to indemnify the compensation amount.

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The accident took place when the deceased was crossing the road on Zebra Crossing. The owner-cum-driver of the offending motor cycle, which dashed the deceased, was having learner’s licence at the time of accident. What is contended by Mr. Mahali that the driver was not accompanied with a regular driver in the motor cycle is not found established on record. No evidence except a copy of the DL of the owner has been adduced from the side of the insurer. The insurer also did not ask anything during cross examination of P.W.1 and P.W.2 to satisfy his contention that no other person was accompanying the driver.

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Admittedly, the driver having a learner’s licence is neither unauthorized nor incompetent to drive the motor cycle on public road. Therefore, in absence of any material to show that he was not accompanied with a regular driver in the motor cycle, the liability of the insurer cannot be denied in terms of the policy condition. As such, no fault is seen in the approach of the tribunal in saddling the liability on the insurer to indemnify the compensation amount.

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In the result the appeal is dismissed with a direction to the insurer – Appellant to deposit the entire compensation amount with interest before the tribunal within a period of two months from today where-after the same shall be disbursed in favour of the claimant – Respondents on the same terms and condition as directed by the

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Page 2 of 3

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M.K.Panda

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Tribunal. However, the direction regarding payment of default interest @ 8% is waived.

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The statutory deposit made by the insurer - Appellant before this court along with accrued interest be refunded to the Appellant on proper application and on production of proof of deposit of the awarded amount before the tribunal.

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An urgent certified copy of this order be issued as per rules.

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( B.P. Routray)
Judge

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Page 3 of 3

Divisional Manager,Oriental Insurance Co.Ltd. v. N.Sailama

Case brief

What is this about?

What did the court decide?

Divisional Manager,Oriental Insurance Co.Ltd. v. N.Sailama

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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