New India Assurance Co. Ltd. vs Sushant Gupta And Ors

P. Sam Koshy, J

Present is an appeal filed by the Insurance Company under Section 173 of the Motor Vehicles Act assailing the award dated 14/12/2011 passed by

the learned Additional Motor Accident Claims Tribunal, Bemetara, District Durg (C.G.) (as it then was) in Motor Accident Claim Case No. 86/2011.

The facts of the case in brief is that, the deceased in the instant case Chaitram - the brother of the registered owner of the Motorcycle bearing

registration No. CG-04-DD-3459 was driving the Motorcycle when he collided with another Motorcycle bearing registration No. CG-10-EC-2279. As

a result of the said accident, the deceased succumbed to the injuries sustained later on. The legal representatives of the deceased filed the claim

application against the owner's of the two Motorcycles and the Insurance Company of the Motorcycle which the deceased was driving.

The Tribunal after considering the evidence which have come on record has awarded a compensation of Rs.2,35,000/- with interest @ 6% per

annum from the date of application and have fastened the liability of payment of compensation upon the present appellant/Insurance Company.

The solitary ground of challenge by the counsel for the Insurance Company is that, the deceased in the instant case was not the registered owner,

nor was he the third party and therefore the Insurance Company would not be liable to indemnify the owner. He further submits that, the Insurance

Company had though taken extra premium covering the risk of owner-cum-driver and since the deceased was not either the owner or the driver, the

Insurance Company on that ground also would not be liable to pay any compensation and thus prayed for the appeal to be allowed and the impugned

award to be set aside.

Perusal of record would reveal that, the Insurance Company infact had admitted the fact that, the vehicle involved in the accident which the

deceased was driving was insured by the present appellant. The policy was a comprehensive policy. An extra premium covering the risk of owner-

cum- driver was also obtained by the Insurance Company.

Another fact which is undisputed is that, the deceased in the instant case Chaitram was the real brother of the registered owner of the Motorcycle

Ramprasad Nishad.

If we apply the principles of law laid down by the Hon'ble Supreme Court in the case of Ningamma & Ors. v. United India Insurance Co.Ltd.

[2009 13 SCC 732] , the brother of the owner shall step into the shoes of the owner.

Since, the deceased in the instant case would step into the shoes of the owner and the Insurance Company having accepted an extra premium

covering the risk of the owner, the legal representatives would be entitled for a compensation to the extent of risk covered by the Insurance Company.

In the instant case, the maximum limit of the risk covered by the Insurance Company is that of Rs.1,00,000/-.

Accordingly, the impugned award stands modified to the extent that, the claimants shall be entitled for an amount of only Rs.1,00,000/- and not the

amount of Rs.2,35,000/- as awarded by the Tribunal. The said amount of Rs.1,00,000/- shall also carry interest at the same rate as has been awarded

by the Tribunal.

The appeal stands allowed in part and disposed off.