NEW INDIA ASSURANCE COMPANY LTD Vs. LAXMI YADAV

JUDGEMENT

(1.) EXEMPTION allowed, subject to all just exceptions. The Application is allowed. The Appellant takes exceptions to a judgment dated 3.05.2012 passed by the Motor Accident Claims Tribunal (the Claims Tribunal) whereby a compensation of Rs.16,03,664/- was awarded for the death of Dwarkanath Yadav who died in a motor vehicle accident which occurred on 26.04.2006.

(2.) THE sole ground of challenge raised on behalf of the Appellant is that although the Appellant successfully proved the breach of the terms of polity, yet instead of exonerating the Appellant, it was made liable to pay the compensation with a right to recover the same from the driver and the owner of the vehicle.

(3.) IT is well settled that even in a case of conscious breach on the part of the insured with regard to the terms of policy, the insurer has statutory liability to pay the compensation to the third party and will only have a right to recover the same from the insured/ tortfeasor either in the same proceedings or by independent proceedings, as the case may be, as ordered by the Claims Tribunal or the Court.