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.
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M.A.C.A. NO. 2294 OF 2008
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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
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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/-