High Court Kerala High Court

The Oriental Insurance Co.Ltd vs Biji on 12 October, 2009

Kerala High Court
The Oriental Insurance Co.Ltd vs Biji on 12 October, 2009
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

MACA.No. 2294 of 2008()


1. THE ORIENTAL INSURANCE CO.LTD.,
                      ...  Petitioner

                        Vs



1. BIJI, D/O.VELAYUDHAN,
                       ...       Respondent

2. E.K.ASOKAN, EDATHADAN HOUSE, ALOOR P.O

3. SANTHOSH M.V., S/O.N.VASUDEVAN NAIR,

                For Petitioner  :SRI.GEORGE CHERIAN (THIRUVALLA)

                For Respondent  :SRI.P.V.ELIAS

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

 Dated :12/10/2009

 O R D E R
                      M.N. KRISHNAN, J.
              = = = = = = = = = = = = = =
                M.A.C.A. NO. 2294 OF 2008
             = = = = = = = = = = = = = = =
       Dated this the 12th day of October, 2009.

                       J U D G M E N T

This appeal is preferred against the award of the

Motor Accidents Claims Tribunal, North Paravur in O.P.(MV)

252/03. The short point that arises for determination is

whether the insurance company can be directed to pay the

amount and get it recovered from the owner when the policy

is an Act only policy. In Swaran Singh’s case National

Insurance Co. Ltd. v. Swaran Singh (2004 (1) KLT

781) the Apex Court ordered the insurance company to pay

the amount and get it reimbursed for the reason that there

was a valid existing policy. But there was breach of policy

conditions which made the owner to pay back the amount to

the insurance company. But when a private vehicle is

covered by an Act only policy the insurance company does

not have the liability to pay the amount. So the question of

asking the insurance company to pay the amount and

recover if from the owner is against the terms of the policy

M.A.C.A. 2294 OF 2008
-:2:-

and the insurance contract. Therefore the learned Tribunal

was wrong in directing the insurance company to pay the

amount and get it recovered. Therefore the award under

challenge is modified and the insurance company is totally

exonerated from the liability and the claimant is entitled to

recover it from the owner and driver jointly and severally. If

the insurance company has deposited any amount since they

have no liability the Tribunal is directed to reimburse the

amount to the insurance company on proper application.

M.N. KRISHNAN, JUDGE.

ul/-