United India Insurance Co.Ltd vs Vishnu Priya (Minor) on 29 October, 2008

       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

MACA.No. 1321 of 2008()


1. UNITED INDIA INSURANCE CO.LTD.,
                      ...  Petitioner

                        Vs



1. VISHNU PRIYA (MINOR),
                       ...       Respondent

2. RADHAKRISHNAN, S/O.JAMARDHANAN PILLAI,

                For Petitioner  :SRI.S.ARUN RAJ

                For Respondent  : No Appearance

The Hon'ble MR. Justice M.N.KRISHNAN

 Dated :29/10/2008

 O R D E R
                            M.N.KRISHNAN, J
                        =====================
                         MACA No.1321 OF 2008
                        =====================

                Dated this the 29th day of October 2008

                                JUDGMENT

This appeal is preferred against the award of the Motor Accidents

Claims Tribunal, Pala in O.P.(MV)No.890 of 2005. The claimant, who

travelled in a private jeep sustained injuries in a road accident and she has

been awarded a compensation of Rs.11,850/- with 9% interest. The

insurance company would contend that since there is no additional premium

paid for the passengers in a private jeep the dictum laid down in United

India Insurance Co.Ltd.v.Tilak Singh(2006(2) KLT 884(SC) would squarely

apply and therefore the insurance company has to be exonerated from the

liability. The Tribunal considered the contention of the insurance company

in paragraph 12 including the conditions of the policy. According to the

Tribunal, Section II of the conditions of policy which reads as follows:

“Subject to the limits of liability as laid down in the
Schedule hereto the Company will indemnify the insured in the
event of an accident caused by or arising out of the use of the
insured vehicle against all sums which the insured shall become
legally liable to pay in respect of
death of or bodily injury to any person including
occupants carried in the insured vehicle (provided such
occupants are not carried for hire or reward) but except so far as

MACA 1321/2008 -:2:-

it is necessary to meet the requirements of Motor Vehicles Act,
the Company shall not be liable where such death or injury
arises out of and in the course of the employment of such
person by the insured”.

Therefore the Tribunal held that the terms and conditions of the policy

cover the risk of a passenger carried in a private vehicle on account of the

same. The very same clause came up for consideration before this Court in

the decision reported in New India Assurance Co.Ltd. v. Hydrose and

others(2008(3) KHC 522(DB). The Division Bench held that when the

terms and conditions of the policy specifically cover the persons carried in a

vehicle other than for hire or reward, the insurance company cannot get

exonerated from the liability and no wider premium is necessary in such

cases. So, in the light of the said decision, I cannot find fault with the

Tribunal for arriving at such a decision. Therefore the appeal lacks merit

and the same is dismissed.

M.N.KRISHNAN, JUDGE

Cdp/-