RELIANCE GENERAL INSURANCE CO LTD Vs. NEETU DEVI

JUDGEMENT

(1.) THE Appellant Reliance General Insurance Company Limited impugns a judgment dated 04.07.2012 passed by the Motor Accident Claims Tribunal (the Claims Tribunal) whereby while awarding a compensation of Rs.9,05,264/- with interest @ 9% per annum, the Appellant was liable to pay the same with a right to recover it from the owner and driver of the offending vehicle.

(2.) THE only ground of challenge raised at the time of hearing is that since the Appellant Insurance Company successfully proved the breach of terms of policy, it ought to have been exonerated of its liability.

(3.) AGAIN in United India Insurance Company Ltd. v. Lehru and Ors., (2003) 3 SCC 338, in para 18 of the report the Supreme Court referred to the decision in Skandia(supra), Sohan Lal Passi(supra) and Kamla(supra) and held that even where it is proved that there was a conscious or willful breach as provided under Section 149(2)(a) (ii) of the Motor Vehicle Act, the Insurance Company would still remain liable to the innocent third party but may recover the compensation paid from the insured. The relevant portion of the report is extracted hereunder: