LAWS(SC)-2009-2-166

ORIENTAL INSURANCE CO LTD Vs. VIMLA DEVI

Decided On February 09, 2009
ORIENTAL INSURANCE CO. LTD. Appellant
V/S
VIMLA DEVI Respondents

JUDGEMENT

(1.) LEAVE granted.

(2.) CHALLENGE in these appeals is to the order passed by a Division Bench of the Uttaranchal High Court. Three appeals filed by the appellant against the common judgment and award dated 10.10.2003 passed by Motor Accidents Claims Tribunal, District Judge, Tehri Garhwal (in short the `MACT') were dismissed. It is the case of the claimants who filed a Claim Petition under Section 166 of the Motor Vehicles Act, 1988 (in short the `Act') that because of rash and negligent driving of the driver of the vehicle i.e. UP.07-F-4885 the vehicle fell into a ditch resulting in the death of three persons namely, Sohan Singh, Uttam Singh and a boy Rakesh Singh aged about 12 years. The dependants of the deceased filed three Claim Petitions for compensation. The appellant-Oriental Insurance Company took the stand the accident occurred due to mechanical failure of the vehicle and in any event the insurance company had no liability as the offending vehicle was being driven in violation of the terms and conditions of the policy and the driver of the offending vehicle did not have a valid driving license. The MACT took the view that the policy was operative for a period from 5.7.1999 to 4.7.2000 and since the accident occurred on 13.4.2000 it was within the validity period. The MACT also noticed that the driver's license was valid during the period of time when the accident occurred. The MACT and the High Court held that the vehicle was the subject matter of insurance for goods as well as for passengers, though it was a goods commercial vehicle. MACT did not accept the stand of the appellant-Insurance company holding that no premium was paid for any passenger. The High Court also accepted the said view.

(3.) THE appeals are allowed to the aforesaid extent.