High Court Kerala High Court

Premalatha vs Shaji on 29 October, 2010

Kerala High Court
Premalatha vs Shaji on 29 October, 2010
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

MACA.No. 1112 of 2010()


1. PREMALATHA, W/O.REGHU,
                      ...  Petitioner
2. REMYA, AGED 22, D/O.REGHU,
3. RENJITHA, AGED 20, D/O.REGHU,
4. RENJU, AGED 17, S/O.REGHU,
5. LEKSHMI, AGED 81, W/O.NARAYANAN,

                        Vs



1. SHAJI, S/O.JOBOY, MALIAKAL HOUSE,
                       ...       Respondent

2. ABDUL SALAM, S/O.SULAIMAN,

3. ABDUL SATHAR, S/O.ABDUL RAHIMAN,

4. THE NATIONAL INSURANCE CO.LTD.,

                For Petitioner  :SRI.C.CHANDRASEKHARAN

                For Respondent  :SRI.LAL GEORGE

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

 Dated :29/10/2010

 O R D E R
                     A.K.BASHEER & P.Q.BARKATH ALI, JJ.
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                                 M.A.C.A.No.1112 OF 2010
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                      Dated this the 2nd day of November 2010

                                          JUDGMENT

Basheer, J.

Appellants are the wife, children and mother of one Reghu, who succumbed

to the fatal injuries suffered by him in a road traffic accident that occurred on

February 17, 2004. Deceased Reghu was transporting his “four wheeler cart”

which was being used by him for sale of his merchandise (ground nuts) on the ill

fated day. He was transporting the four wheeler along with his other paraphernalia

in a Goods autorikshaw to the Aluva Sivarathri ground where the annual festival

was being held. It is beyond controversy that the goods vehicle turned up side

down on its way to Aluva. Deceased Reghu was caught underneath the vehicle and

sustained the fatal injuries resulting in his death. Appellants claimed a total sum of

Rs.5,85,000/- towards compensation from the owner, driver and insurer of the

above goods vehicle.

2. The Tribunal, after considering the oral and documentary evidence

available on record, found that the appellants would be entitled to get a total sum

of Rs.2,91,128 with 7% interest, towards compensation. However, the Tribunal

exonerated the insurance company from the liability to indemnify the

insured/owner of the vehicle and held that the owner and driver shall be liable to

pay compensation to the appellant.

3. Appellants impugn the above award primarily on the ground that

exoneration of the insurer is totally illegal and unsustainable. It is also contended

that the quantum fixed by the Tribunal is totally inadequate and meager. It is

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further contended by the learned counsel that the insurance company had never

disputed that the goods belonging to the deceased were being carried in the vehicle

involved in the accident.

4. The specific case of the insurance company, as could be seen from the

written statement filed by it, was that the accident had occurred due to the

negligent act of the deceased himself who travelled in the goods autorikshaw

sitting along with the driver in his seat. According to the insurance company, the

driver lost control of the vehicle since the deceased was sharing his seat. It is

contended by the learned counsel that the fact that the deceased was carrying the

goods in the vehicle was beyond controversy. But the evidence of PW2 will show

that the deceased was travelling in the vehicle sitting on the platform along with

his goods. PW2 asserted that he was sharing the driver’s seat as requested by the

driver himself.

5. We have carefully perused the oral testimony of PW2. The assertion made

by PW2 that he was in fact persuaded to share the driver’s seat at the instance of

the driver himself has not been challenged at all. However, learned counsel for the

insurance company invites our attention to Ext.A1 charge sheet filed by the police

after completing the investigation in the crime registered against the driver of the

autorikshaw. It is true that in the charge sheet, it is seen recorded that the

accident occurred while the deceased was travelling in the vehicle sitting along

with the driver. But as has been mentioned by us earlier, the presence of PW2 in

the autorikshaw has not been disputed by the insurance company. No such

question was ever put to this witness in the course of cross examination.

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6. We do not find any reason to disbelieve the oral testimony of PW2. What

remains is, only the question whether the deceased was traveling by sharing the

driver’s seat or sitting on the platform of the auto.

7. We have already noticed that the specific case of the insurance company

in the written statement was that the accident occurred only because the deceased

happened to share the driver’s seat. According to the company, the driver lost

control of the vehicle, since the deceased was sharing the driver’s seat. Be that as

it may. The fact remains that the deceased was carrying his goods in the

autorikshaw on the ill fated day. The vehicle turned turtle and the deceased

happened to be caught under the vehicle. He succumbed to the injuries later. The

short question that arises for consideration is whether the Tribunal was justified in

exonerating the insurance company from the liability to pay the compensation in

the above facts and circumstances.

8. Learned counsel for the insurance company has invited our attention to a

number of decisions in support of his plea that in such a situation, the insurance

company cannot be held liable. Particular reference has been made by learned

counsel to a decision in United India Insurance Co. Ltd. v. Suresh [2008 (4) KLT

552 SC] and also in National Insurance Co. Ltd. v. Cholleti Bharatamma and others

[(2008) 1 SCC 423]. In Suresh (supra), the claimant sustained certain injuries in

the accident that occurred while he was travelling in a goods vehicle sitting by the

side of the driver. The Tribunal held the owner and insurer of the vehicle liable to

pay the compensation repelling the contentions raised by the latter that the

claimant was not entitled to get any compensation since he was a gratuitous

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passenger. The High Court in appeal affirmed the above award. But the apex

court held thus:

“If the claimant had not been travelling in the vehicle as owner of the

goods, he shall not be covered by the policy of the insurance. In any

view of the matter in a three wheeler goods carriage, the driver could

not have allowed anybody else to share his seat. No other person

whether as a passenger or as a owner of the vehicle is supposed to

share the seat of the driver. Violation of the condition of the contract of

insurance, therefore, is approved.”

9. However, the apex court further proceeded to hold that the insurance

company would be liable to pay the amount of compensation to the claimant and

realize the same from the owner of the vehicle.

10. In Bharatamma (supra), it can be seen that the common question that

arose for consideration in a batch of appeals was whether passengers travelling in

goods carriages would be entitled to claim compensation from the insurer of those

vehicles. In other words, the question was whether or not a passenger who

accompanies his goods in a goods vehicle would be entitled to claim compensation

from the insurer. Their lordships after referring to a large number of decisions

held that passengers who were carried in goods vehicles would not be entitled to

get compensation from the insurer of those vehicles.

11. Coming back to the case on hand, we have already noticed that the

deceased was admittedly carrying his own goods in the ill fated vehicle. Though

the charge sheet indicated that the deceased was sharing the driver’s seat, the

uncontroverted oral testimony of PW2 clearly established that the deceased was

sitting on the platform of the vehicle along with his goods. In any of the two events,

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it can never be said that the deceased was not accompanying his goods. Therefore,

we have no hesitation to hold that the contention of the insurance company that the

claimants would not be entitled to claim compensation from it since the deceased

was a gratuitous passenger cannot be sustained at all. Learned counsel for the

appellants has invited our attention to a few decisions in support of his argument,

one of which is New India Assurance Co. Ltd. v. Bhudhiya Devi and others (2010

ACJ 2045). In this case, the deceased was travelling in a truck along with his cows

and buffallows. The apex court held that the insurance company would be liable to

indemnify the owner.

12. In B.V.Nagaraju v. Oriental Insurance Co. Ltd. [(1996) 4 SCC 647], the

owner of a truck instituted a petition seeking compensation for the damage caused

to his vehicle in an accident. At the time of the accident, the truck was carrying

nine persons. The policy issued by the insurance company did not cover risk of

passengers in the vehicle except employees (other than the driver) not exceeding

six, coming under the purview of the Workmen’s Compensation Act. The claim

made by the owner of the vehicle was repudiated by the company. The State

Consumer Commission allowed a sum of Rs.75,700/- as compensation. But the

National Consumer Commission reversed the order of the State Commission.

However, the apex court allowed the appeal filed by the owner and held thus:

“It is plain from the terms of the Insurance Policy that the insured

vehicle was entitled to carry 6 workmen, excluding the driver. If those

6 workmen when travelling in the vehicle, are assumed not to have

increased any risk from the point of view of the Insurance Company on

occurring of an accident, how could those added persons be said to

have contributed to the causing of it is the poser, keeping apart the

M.A.C.A.No.1112 OF 2010
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load it was carrying. In the present case the driver of the vehicle was

not responsible for the accident. Merely by lifting a person or two, or

even three, by the driver or the cleaner of the vehicle, without the

knowledge of the owner, cannot be said to be such a fundamental

breach that the owner should, in all events, be denied indemnification.

The misuse of the vehicle was somewhat irregular though, but not so

fundamental in nature so as to put an end to the contract, unless some

factors existed which, by themselves, had gone to contribute to the

causing of the accident”.

Their lordships further laid down that “The exclusion term of the

insurance policy must be read down so as to serve the main purpose of

the policy that is to indemnify the damage caused to the vehicle.”

13. Keeping in view the dicta laid down in the judgments referred to above,

we are satisfied that the insurance company has to be ordered to pay the appellants

the compensation fixed by the Tribunal. We do so. However, the company will be

entitled to recover the amount of compensation from the owner and driver of the

offending vehicle.

Appeal is disposed of in the above terms.

A.K.BASHEER, JUDGE

P.Q.BARKATH ALI, JUDGE
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