Allowed

Branch Manager, Oriental Insurance Co. Ltd. v. Gangaram Patel

Telangana HC6 Feb 2012MACMA/3853/2011

Case brief

AI extract

What is this about?

The appeal against an award for motor accident compensation was allowed. The court held that the Insurance Company has no liability to pay or recover compensation when passengers in goods vehicles are gratuitous, exonerating the insurer and directing recovery from the vehicle owner.

What did the court decide?

Appeal allowed; Insurance Company exonerated from liability; Claimants entitled to recover against vehicle owner; Insurer allowed refund of deposited amount.

Branch Manager, Oriental Insurance Co. Ltd. Vs… — Motor Accident Claims | Telangana HC (2012)

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HON’BLE SRI JUSTICE N.R.L. NAGESWARA RAO

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M.A.C.M.A.No.3853 OF 2011

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JUDGMENT:

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The appeal is filed by the appellant/respondent No.2 against the award in M.V.O.P.No.479 of 1993 on the file of the Motor Accidents Claims Tribunal-cum-VII Additional District & Sessions Court (Fast Track Court), Nizamabad at Bodhan, questioning the liability of the Insurance Company.

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2. A claim for compensation of Rs.1,00,000/- was made consequent on the death of the deceased Vijayalaxmi in a motor accident. Parties are referred as arrayed in the lower Tribunal.

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3. According to the case of the petitioners, on 08.08.1993 when the deceased was traveling in a lorry bearing No.ATT 3610 as a labourer, the driver of the lorry drove it in a rash and negligent manner and when it reached near Middemitta village, the lorry turned turtle, as a result of which, the deceased fell underneath the lorry and was crushed and died on the sport. The deceased being labour, used to earn Rs.900/per month and therefore, a claim for Rs.1,00,000/- was made. The 1^st respondent, who is owner of the lorry, remained ex parte. The 2^nd respondent, which is Insurance Company and appellant herein, filed counter, denying the averments made in the petition and putting the petitioners to strict proof of rashness and negligence on the part of the driver of the lorry, cause of death of the deceased and further contended that the deceased was an unauthorized passenger in a goods vehicle and therefore, it has no liability. After considering the material evidence on record, the lower Tribunal passed an award for Rs.1,00,000/- and directed the appellant, who is the 2^nd respondent in original petition, to deposit the amount and get refund of the same from

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the owner of the vehicle. Aggrieved by the said judgment, the present appeal is filed.

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4. The point for consideration is whether the appellant is liable to pay and recover the awarded amount?

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5. POINT:

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Evidently, from the material available on record, the deceased along with 40 others was travelling in a goods vehicle as a passenger. The lower Tribunal also accepted the same. In view of the settled principle that there is no liability for the Insurance Company for the claims of the persons of gratuitous passengers in a goods vehicle and in view of the judgments reported in National Insurance Co., Ltd., Vs.

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Bommithi Subbhayamma and others^[1] and New India Assurance Company Vs. Asha Ran i^[2] , the insurance company cannot be directed to pay and recover the same when there is no liability.

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6. Therefore, the appeal is allowed exonerating the liability of the Insurance Company and the claimants are entitled to recover the compensation from the owner of the vehicle. As per the direction of this Court, the appellant has deposited half of the amount and therefore, the appellant is entitled to get refund of the same. There shall be no order as to costs.

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_______________________________ JUSTICE N.R.L. NAGESWARA RAO

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Date: 06.02.2012 INL

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[1] 2005 ACJ 721 [2] 2003(1) ACJ 1

Branch Manager, Oriental Insurance Co. Ltd. v. Gangaram Patel

Case brief

What is this about?

What did the court decide?

Branch Manager, Oriental Insurance Co. Ltd. v. Gangaram Patel

Case brief

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What did the court decide?

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