High Court Kerala High Court

The Oriental Insurance Co. Ltd vs Joseph Chacko on 8 July, 2008

Kerala High Court
The Oriental Insurance Co. Ltd vs Joseph Chacko on 8 July, 2008
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

MACA.No. 495 of 2004()


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

                        Vs



1. JOSEPH CHACKO,
                       ...       Respondent

2. RAVI, S/O. MANICKEN,

3. LEKSHMI BALASUBRAMANIAN,

                For Petitioner  :SRI.M.JACOB MURICKAN

                For Respondent  :SRI.MATHEW JOHN (K)

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

 Dated :08/07/2008

 O R D E R
                       M.N. KRISHNAN, J.
                = = = = = = = = = = = = = =
                  M.A.C.A. NO. 495 OF 2004
             = = = = = = = = = = = = = = =
          Dated this the 8th day of July, 2008.

                        J U D G M E N T

This appeal is preferred against the award of the Motor

Accidents Claims Tribunal, Kottayam in O.P.(MV)874/97. It

is a petition filed for claiming compensation for the damages

sustained to the vehicle which belong to the claimant. The

claimant has been awarded an amount of Rs.86,240/- as

compensation. The insurance company has come up in

appeal. The principal challenge is that after settling the

amount with its own insurance company the claimant is not

entitled to again get the amount from the insurance company

involved in this case. The learned Tribunal relying upon the

decision of the Delhi High Court reported in A.C. Mehra v.

Behari Lal (1998 ACJ 379) held that the insurance

company is not entitled to raise such a plea and therefore

proceed to award the compensation. This point has been

considered by this Court in a recent decision reported in

National Insurance Co. Ltd. v. Mohan (2008 (2) KLT

683). The learned Judge held that,

M.A.C.A. 495 OF 2004
-:2:-

“The insured is entitled to maintain an action

against the tortfeasor even if he had received

compensation from his insurer. But he cannot

appropriate that amount which he had received

from the company and he will hold that amount

as trustee of the insurer and he is answerable

and accountable to the insurance company to

that extent. If the insurer after obtaining a

letter of subrogation from the first respondent

had filed an Original Petition or it had also joined

in filing the original petition it would have been

entitled to that amount. Even assuming that

first respondent is entitled to receive the amount

he can only receive the same in trust. But the

insurer has not made any claim over the amount

though it is made a party to this proceedings.

So the first respondent cannot be allowed to

make any double benefit. So he is not entitled

to get any compensation in this proceedings.”

2. In such cases the principle applied is that there

cannot be two compensation for the same incident. Unless

there are records to prove that the original claim has been

satisfied as full and final settlement there is always a scope

to claim for the balance amount against the tortfeasor.

M.A.C.A. 495 OF 2004
-:3:-

Here, except for the averment in the appeal memorandum

and the written statement that it was full and final

settlement of the claim, nothing is forthcoming from the side

of the insurance company to establish that fact. Therefore I

feel this is a fit case where the claimant is entitled to claim

the difference. The Tribunal has awarded a sum of

Rs.86,240/- as damages whereas the claimant has already

received a sum of Rs.77,900/- from its insurance company.

Therefore, the claimant will be only entitled to realise the

balance amount of Rs.8,340/- towards damages. So

applying the principles on the question of tortfeasor the

maximum amount the claimant is entitled to will be only this

amount in the absence of any evidence regarding the fact

that the earlier settlement by the insurance company of the

claimant was in full and final settlement. Therefore the

award passed by the Tribunal is modified and the claimant is

awarded a compensation of Rs.8,340/- with 6% interest on

the said sum from the date of petition till realisation with

costs of Rs.500/-.

M.A.C.A. 495 OF 2004
-:4:-

It is submitted that Rs.43,000/- had been deposited

and the claimant has withdrawn the same. Therefore, the

claimant is directed to redeposit the excess amount

withdrawn. If he does not deposit, the insurance company can

execute this award for realisation of the same.

M.N. KRISHNAN, JUDGE.

ul/-