Appeal by insurer against third party compensatory award dismissing claims that escaped driver caused accident without valid licence. Court held insurer liable for stolen vehicle's third party damage.
Appeal dismissed as frivolous.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
FAO No.4550 of 2002
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IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH
FAO No.4550 of 2002 Date of Decision. 21.09.2010
The New India Assurance Company Limited, SCO 36-37, Sector 17-A, Chandigarh through its Regional Manager
......Appellant
Versus
Smt. Raj Rani wd/o Sh. Sohan Lal @ Sohan Singh son of Kashmir Singh and others
......Respondents
Present: Mr. L.M. Suri, Senior Advocate with Mr. Neeraj Khanna, Advocate for the appellant.
None for the respondents.
CORAM:HON'BLE MR. JUSTICE K. KANNAN
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K. KANNAN J.(ORAL)
FAO No.4550 of 2002 -2- ACJ 865 (Bombay). Considering the claim from 3rd party perspective, the Tribunal said that the benefit flowing from statute for compulsory insurance cover cannot be whittled down, by relying on a decision of this Court in Muktiar Singh Vs. Kailasho Devi 2002 (1) ACJR 252 (P&H) and New India Assurance Company Limited Vs. Smt. Bhanwari Devi and others 2001 ACJR 632 .
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FAO No.4550 of 2002
always be seen as pivotal to deny the benefit of indemnity to the insured. That was the philosophical underpinning in the decision in Skandia Insurance Co. Ltd. Vs. Kokilaben Chandravadan and others AIR 1987 SC 1184 when the Hon'ble Supreme Court fastened the liability on an insurer, when the authorized driver had gotten down from the vehicle, when some unauthorized person got into the vehicle and involved the vehicle in an accident giving rise to a 3rd party damage.
(K. KANNAN) JUDGE
September 21, 2010 Pankaj*
3 issues framed by the court
Whether insurer of stolen vehicle can deny third party liability claim due to lack of licensed driver or policy breach.
Whether breach of policy terms by insured in case of vehicle theft is a valid defence for insurer against third party damage claims.
Whether agreement to refer to Arbitrator is binding on insurer or can it default arbitration proceedings.
Colour shows how this judgement treated each authority
Shujaat Z. Dalal and another Vs. Muktabai Vitthal Lohar and othersReferred¶19
Shujaat Z. Dalal and another Vs. Muktabai Vitthal Lohar and others 1995, ACJ 865 (Bombay)
Muktiar Singh Vs. Kailasho DeviReferred¶20
Muktiar Singh Vs. Kailasho Devi 2002 (1) ACJR 252 (P&H)
New India Assurance Company Limited Vs. Smt. Bhanwari Devi and othersReferred¶20
New India Assurance Company Limited Vs. Smt. Bhanwari Devi and others 2001 ACJR 632
Bishan Devi and others Vs. Sirbaksh Singh and anotherExplained¶21
Bishan Devi and others Vs. Sirbaksh Singh and another (1980) 1 SCC 273 · Who else cites this
National Insurance Co. Ltd. Vs. Nitin KhandelwalExplained¶21
National Insurance Co. Ltd. Vs. Nitin Khandelwal (2008) 11 SCC 259 · Who else cites this
Skandia Insurance Co. Ltd. Vs. Kokilaben Chandravadan and othersExplained¶24
Skandia Insurance Co. Ltd. Vs. Kokilaben Chandravadan and others AIR 1987 SC 1184 · Who else cites this
The New India Assurance Company Limited
Smt. Raj Rani and others
K. Kannan
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
