Page 41 - Insurance Times September 2019

LEGAL

Vehicle Insurance

Law on insurer's burden in a flux volved in looking after the boy, it would be "just and
proper" to raise the compensation to Rs. 10 lakh with 6
The liability of an insurance company to compensate a
road accident victim when the terms of the policy have per cent interest.
been violated came in for examination again in the Bombay
High Court in United India Insurance Co vs Sukumarbai. In Supreme Court Enhances Compensation

several cases; the Supreme Court had asked the insurance in Motor Accident Claim
company to pay the victim and then recover the amount The bench of Justices Indu Malhotra and Sanjiv Khanna in
from the owner or guilty of rash driving. But those orders Sunita Tokas & Anr. Versus New India Insurance Co. Ltd. &
were passed by the Supreme Court under Article 142 of Anr reiterated that age of deceased is material in decid-
the Constitution which grants it special powers to do "com- ing enhancement of compensation granted by Motor Ac-
plete justice". The question of whether other courts can
cident Claims Tribunal, Patiala House Courts, New Delhi.
also pass orders to the insurer to pay and then recover it
from the owner or driver of the vehicle which caused the The son of the Appellants viz. Pradeep Tokas 21 years was
accident is oil debated. a student who was a trained swimmer, and had won prizes

Case Jaw is often cited from both sides. The Supreme Court in State-level events. On 11.05.2004, he met accident with
has not decided the question finally though it was before truck while sitting on a two-wheeler. The truck was stand-
ing in the middle of the road without any indicator lights
it for a long time. In this case, the tribunal followed the
Supreme Court, believing that "pay and recover" is the on. The two-wheeler dashed against the stationary truck,
norm. But on appeal by the insurance company, the high and both Pradeep Tokas and the driver died on the spot.
court asserted that when the terms of the policy were vio- The Appellants filed the Claim Petition before the MACT,
lated the insurer must be exonerated and the liability fell
entirely on the owner or driver. Patiala House Courts, New Delhi claiming compensation on
the death of their son. The MACT vide Award dated
Niggardly towards lifetime disability 25.05.2009 granted compensation of Rs. 14,87,140/- along
with interest @7% p.a. to the Appellant-Claimants. The
The Supreme Court has recently criticised the Calcutta High Aggrieved by the aforesaid Award Appellants filed before
Court for dismissing the appeal of a woman without giv- the Delhi High Court for enhancement of compensation.
ing reasons. She had appealed on behalf of her 10-year-
The Respondent – Insurance Company also filed a
old son who suffered a permanent disability of 70 per cent cross-appeal for reduction of compensation. The High
in a road accident. The motor accident compensation tri- Court reduced the amount of compensation awarded by
bunal awarded Rs. 2 lakh to him. The mother appealed to the MACT to Rs. 9,25,000/-.
the high court against the miserly amount.
Aggrieved by the aforesaid Judgment, the Appellant–Claim-
But the high court summarily dismissed it. Allowing her ants filed the present Civil Appeal for enhancement of the
appeal, Rupa Roy vs New India Assurance, the Supreme compensation awarded. Court relied on Amrit Bhanu Shali
Court observed that "In the absence of any discussion and & Ors. v. National Insurance Co. wherein the apex court
reasoning, we are at a loss to know as to what persuaded had held that the selection of multiplier is based on the
the high court to dismiss the appeal". It stated that in view age of the deceased, and not on the basis of the age of
of permanent disability and the expense and agony in- the dependants. There may be a number of dependants

The Insurance Times, September 2019 41