United India Insurance Company Ltd. vs Ved Prakash Sagar and Others

S.P. Srivastava, J.—Heard the learned Counsel for the insurer-appellant.

The insurer-appellant feels aggrieved by the Award of an amount of Rs. 1,54,000/- as compensation to the claimants on account of the untimely death of Atish Kumar @ Guddu, aged about 20 years, son of the claimants in an accident involving the offending motor vehicle-a Chetak Scooter No. U.P.-25D/4069, insured with the present appellant.

According to the claimants the deceased had met with the accident on 13.3.1998 at 6 p.m. with the aforesaid scooter. He was a cycle mechanic and his total income was of Rs. 15,000/- per annum. The deceased succumbed to his injuries the next day at 9 p.m. in the night.

It was not denied that the accident was caused by the scooter owned by Sabir Hussain, opposite party No. 3 and that the scooter was insured with the United India Insurance Company. At the time of accident the scooter was not driven by Sabir Hussain but by one Rajesh who was not holding the valid driving licence.

The learned Counsel for the appellant has tried to assail the findings of the Tribunal returned against it but has not been able to demonstrate that the findings can be taken to be suffering from any such legal infirmity which may justify an interference therein.

It has next been contended by the learned Counsel for the appellant that there was a breach of terms and conditions subject to which the insurance policy had been issued covering the risk. The contention is that the offending scooter was being driven by a driver who had no valid licence.

Be that as it may, so far the statutory liability of the insurer appellant contemplated under the provisions of the Motor Vehicles Act in the matter relating to the payment of just compensation determined by the Motor Accident Claims Tribunal is concerned, the mere fact that there was a breach of the terms and conditions subject to which the insurance policy had been issued cannot have the effect of exonerating the insurer of his statutory liability cast upon him in this regard to pay the amount to the third party.

In such a situation, it is always open to the insurer to get the amount paid in excess refunded to it from the owner/insured in an appropriate proceedings initiated before the Motor Accident Claims Tribunal in which proceedings such a dispute can be decided between the insurer and the insured after affording an opportunity of hearing to the insured in accordance with law.

It will, therefore, be open to the insurer-appellant to initiate an appropriate proceeding for the refund of the amount paid by it to the claimants and establish the breach of the terms and conditions subject to which the insurance policy had been issued.

The dismissal of this appeal will not come in the way of the insurer-appellant initiating such proceedings.

Taking into consideration the totality of the circumstances as brought on record this appeal is totally devoid of merits, which deserves to be and is hereby dismissed in limine.

As prayed, the amount of Rs. 25,000/- deposited in this Court by the insurer-appellant u/s 173 of the Motor Vehicles Act be remitted to the Motor Accident Claims Tribunal concerned so that it may be disbursed to the claimants.