High Court Kerala High Court

United India Insurance Company vs Ratnakaran on 18 June, 2010

Kerala High Court
United India Insurance Company vs Ratnakaran on 18 June, 2010
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

MACA.No. 2411 of 2009()


1. UNITED INDIA INSURANCE COMPANY
                      ...  Petitioner

                        Vs



1. RATNAKARAN, S/O. BHASKARAN,
                       ...       Respondent

2. THE DIRECTOR GENERAL OF POLICE,

3. THANKAPPAN ASARY,

                For Petitioner  :SRI.MATHEWS JACOB (SR.)

                For Respondent  :GOVERNMENT PLEADER

The Hon'ble MR. Justice A.K.BASHEER
The Hon'ble MR. Justice P.Q.BARKATH ALI

 Dated :18/06/2010

 O R D E R
                   A.K.BASHEER & P.Q.BARKATH ALI, JJ.
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                               M.A.C.A.No.2411 OF 2009
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                        Dated this the 18th day of June 2010

                                        JUDGMENT

Basheer, J.

The short question that arises for consideration in this appeal is whether

the Motor Accident Claims Tribunal was justified in fastening the liability to

indemnify the owner/insured of the vehicle on the appellant/insurance company.

2. Relevant facts may be briefly noticed:

3. A jeep belonging to the Police Department was involved in the accident

in question. Respondent No.1 herein, who suffered serious injuries in the

accident, claimed compensation on account of those injuries. The Tribunal, after

considering the oral and documentary evidence on record, found that respondent

No.1 was entitled to get a sum of Rs.1,09,253/- with interest.

4. While considering the question of liability, the Tribunal noticed that the

appellant/insurance Company had issued an “Act only” policy in respect of the

vehicle. In other words, admittedly, the policy did not cover the passengers in the

jeep. Nevertheless the Tribunal proceeded to hold that the appellant/insurance

company would be liable to indemnify the owner/insured in as much as the

company knew that it was a departmental vehicle to be used to carry Police

personnel and the company cannot contend for the position that the passengers in

the jeep (police personnel) would not be covered by the policy. The reasoning of

the Tribunal was that since the insurer knew the purpose for which the vehicle

had been purchased by the department, the policy issued by the company should

be construed to cover the risk of the passengers, namely, the police personnel.

M.A.C.A.No.2411 OF 2009
:: 2 ::

5. We are afraid the above finding entered by the Tribunal is wholly

unsustainable. As has been mentioned earlier, there is no dispute that the policy

issued by the appellant in respect of the vehicle in question is only an “Act only”

policy. No additional premium was paid by the insured to cover the risk of the

passengers in the said vehicle. In that view of the matter, the insurance company

cannot be fastened with the liability to indemnify the insured.

6. The above claim petition was disposed of along with three other claim

petitions. The claimants are admittedly police constables. It is brought to our

notice that in respect of the award passed in two cases (MACA 2412/09 &

2428/09), this court has allowed the appeal filed by the insurance company and

exonerated it from the liability. In that view of the matter also, the award passed

by the Tribunal cannot be sustained. It is made clear that it will be open to

respondent No.1/claimant to realise the amount from respondents 2 and 3. The

amount, if any, deposited by the appellant shall be refunded to the insurance

company, if it has not already been disbursed.

The appeal is allowed.

A.K.BASHEER, JUDGE

P.Q.BARKATH ALI, JUDGE
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