BAJAJ ALLIANZ GENERAL INSURANCE CO. LTD Vs. SAVITRI

JUDGEMENT

(1.) THE Appellant Bajaj Allianz General Insurance Co. Ltd. impugns a judgment dated 11.07.2012 passed by the Motor Accident Claims Tribunal(the Claims Tribunal) whereby while awarding a compensation of Rs.7,17,100.00 in favour of the Respondents No.1 to 6, the Appellant was made liable to pay the compensation with a right to recover the same from the Respondents No.7 and 8 (Respondents No.1 and 2 before the Claims Tribunal).

(2.) THE only ground raised by the learned counsel for the Appellant is that since the Appellant successfully proved the breach of the terms of policy, it was entitled to be exonerated of its liability to pay the compensation and the Appellant should not have been made liable to pay the compensation in the first instance and then to recover the same from the owner and the driver.

(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, Sohan Lal Passi and Kamla 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: