BAJAJ ALLIANZ INSURANCE COMPANY LTD Vs. SHOBHA DEVI

JUDGEMENT

(1.) THE Appellant Bajaj Allianz Insurance Company Ltd. impugns a judgment dated 05.06.2010 whereby, while awarding a compensation of Rs. 12,25,000/- for the death of Bhonu Sahni in a motor accident which took place on 13.04.2009, the Motor Accident Claims Tribunal made the Appellant (Insurer) liable to pay the compensation awarded.

(2.) THE Appellant does not dispute the finding on negligence or on the quantum of compensation. THE contentions raised on behalf of the Appellant is that the deceased was a gratuitous passenger and, therefore, in view of the judgment in New India Assurance Co. Ltd. v. Asha Rani, III (2002) ACC 753 and National Insurance Co. Ltd. v. Baljit Kaur & Ors. (2004) 2 SCC 1, the Appellant was not liable at all to pay any compensation. It is urged that even otherwise the vehicle involved in the accident was a three-wheeler bearing No.DL- 1LH-1762 having sitting capacity for only the driver which is evident from the Insurance Policy Ex.R4W1/1 and the deceased was not entitled to travel and share the seat with the driver of the three-wheeler (tempo). Reliance is placed on United India Insurance Company Limited v. Suresh K.K. & Anr. (2008) (12) SCC 657. After the amendment of Section 147 of the Motor Vehicles Act w.e.f. 14.11.1994, the risk of the owner or his authorized representative has been specifically covered in the policy of insurance. In National Insurance Co. Ltd. v. Baljit Kaur & Ors. (supra), it was held as under:

(3.) A perusal of the Insurance Policy Ex.R4W1/1 shows that the three-wheeler No. DL-1LH-1762 had the sitting capacity for just one person i.e. the driver of the vehicle. In view of the judgment in United India Insurance Company Limited v. Suresh K.K. & Anr(supra), it was not permissible for the driver to share the seat; thus there was a violation of the condition of the contract of insurance. Since the deceased was not a third party, there is no statutory liability of the Insurance Company to pay the compensation in the first instance and then to recover the same from the owner of the vehicle.