NATIONAL INSURANCE COMPANY LTD Vs. CHIEF ELECTORAL OFFICER

JUDGEMENT

(1.) The non-application of the general strict liability principle, in case of an insurance policy, is sought to be questioned, where an expanded meaning has been given to the relevant term of the insurance policy in order to grant insurance claim, now assailed before us by the insurance company, the Appellant herein, in view of the order dtd. 3/10/2017 passed by the Division Bench of Patna High Court in favour of Respondent No. 1 herein. The original claim was made by a writ petition filed by the prospective beneficiary i.e. Respondent No.2 herein, but while granting the benefits to the beneficiary, a liability was placed on Respondent no.1 and not on the insurance company, which aspect was reversed by the Division Bench vide its judgment dtd. 3/10/2017 fastening the liability on the insurance company.

(2.) The Appellant, insurance company, and Respondent No.1, the Chief Electoral Officer, Bihar, Patna, entered into a Memorandum of Understanding (hereinafter referred to as 'MoU ') on 9/2/2000 to provide insurance cover to the persons deployed for election related work for Bihar Legislative Assembly Elections in the year 2000. The relevant Clause in question of the MoU is Clause 3, which reads as under:

(3.) The husband of Respondent No.2, late Deval Ravidas, Constable, Shivhar District Force, was a member of the Static Armed Force, posted at Booth no.67, Primary School, Mathura Sultanpur, Police Station Bidupur, District Vaishali, who died due to a sun stroke/heat stroke while performing election duty for the Bihar Legislative Assembly. As stated, this was during the extended period of the insurance policy. It appears that the matter rested at that for a fairly long time and it is only in the year 2008 that Respondent No.2, wife of the deceased Constable Deval, sought to raise the issue of compensation vide her letter dtd. 21/11/2008.