Page 41 - Insurance Times April 2020

CASE STUDIES CASE STUDIES

ON MOTOR responsible in the above situation?
a. His driver is solely responsible
b. Mr. Ranjit is definitely responsible

INSURANCE c. Matter to be dealt by Solatium fund
d. No, Mr. Ranjit Singh is no way responsible

[Note : As per the common Law, the master is liable
for the tortious acts of the servant provided the servant
does such act in the course of his employment. The common
law also recognizes the vicarious liability of the owner of the
Motor Case Study No.6: motor car. In the law of torts, if a person negligently drives
Ms. Payal met with an accident while driving her car, and it his vehicle and causes injury or death to the third party, the
was due to defective brakes in the car, which she realized driver whose negligence caused the damage is liable to the
while driving the car. She claimed compensation from the third party. The driver is the servant of the owner, and since
insurers for the damages sustained by her car in this process. he is a person of no means, the owner is liable for all his
In such case - acts so far that he has done such acts in the course of his
a. Yes - her claim is payable employment. In the above case based on the provisions of
b. Claim is payable on non-standard basis the common law Mr. Ranjit is held liable for the damage
caused to the third party. (Pushpabai Sudershin Vs. Ranjit G
c. Ms. Payal cannot claim any compensation and P Co) ].
d. Claim is payable but excluding the defective brakes
Motor Case Study No.8:
[Note: Ms. Payal cannot claim any compensation in the Mrs. Alia Agarwal received a brand new Maruti Zen from
above situation because the Insurers are not held liable her husband on her birthday. The car was insured against
where there is inherent defect in the vehicle. Moreover, damage or loss with XYZ Insurance Company for an amount
when the vehicle is not roadworthy and in a dangerous of Rs 5 lakhs with a deductible of Rs 5,000/- from her
condition the insurer is absolved from his liability to coverage. One day, Mrs. Alia, who was an experienced
indemnify such an insured, whenever any condition of the driver, took the car out to visit her friend. On the way to
policy is breached by the insured. The insurer will not make her friend's place, she had to stop at a traffic signal.
the loss good; similarly where the loss is due to want of foot Although she stopped her car to avoid jumping the signal, a
brakes as any mechanical breakdown is not allowed to be speeding driver from behind rammed into her car. The
covered under motor policy.] impact of the collision was such that Alia suffered severe
injuries and she had to be hospitalized. Her car was reduced
Motor Case Study No.7: to a wreck. Investigations revealed that the car that hit
Mr. Ranjit Singh had engaged a driver for his car, who had Alia's car was being driven by one Mr. Dayan Garg. Mrs.
negligently driven the vehicle and caused a grievous heart / Alia filed a claim for loss with her insurance company and
damage to a third party on the road, is Mr. Ranjit received Rs 4, 25,000/- as damage claim. The insurance
company, in turn, sued Mr. Dayan on behalf of its
About the author policyholder, Alia for the same amount that the Insurance
Company had paid her. Mr. Dayan approached the court
Anabil Bhattacharya challenging the validity of the insurance company's suit.
B.M.E. (Honours), F.I.I.I.,
Retired Chief Manager, H.O. Questions for Discussion:
National Insurance Co. Ltd. 8.1. What is the principle on the basis of which the
Kolkata. insurance company accepted Mrs. Alia's claim and
later filed a suit against Mr. Dayan?
The Insurance Times, April 2020 41