ORIENTAL INSURANCE COMPANY LIMITED Vs. RITA AND ORS

JUDGEMENT

(1.) The accident claim case (MACT suit no.694/08/07) instituted by the first to fourth respondents (collectively, the claimants) on 15.11.2007 prayed for compensation under section 163A of the Motor Vehicles Act, 1988 on account of the death of Vipin Sharma @ Babloo in a motor vehicular accident that occurred on 29.10.2007 involing a motor cycle no.DL-5SU-8644 (motor cycle). The registered owner of the said motorcycle (fifth respondent herein) was impleaded as the first respondent in the said proceedings with the appellant insurance company (insurer) as the second respondent.

(2.) The Motor Accident Claims Tribunal (Tribunal), by judgment dated 17.08.2009, awarded compensation in favour of the claimants and directed the appellant to pay the said amount rejecting its contention of it not being liable since the deceased was not a third party.

(3.) It is clear from the pleadings and evidence on record that the deceased had borrowed the vehicle from the registered owner. In this view of the matter, he had stepped into the shoes of the registered owner (insurer) and therefore, would not be covered by the expression "third party", which liability was undertaken by the insurance company. In view of these facts, following the settled law on the subject, as per rulings of the Supreme Court in New India Assurance Company Ltd. v. Sadanand Mukhi and Ors., 2009 2 SCC 417 and Ningamma and Anr. v. United India Insurance Company Ltd., 2009 13 SCC 710 and the view taken by this court by judgment dated 02.03.2016 in Oriental Insurance Co. Ltd. v. Shakuntala and Anr., MACA 142/2007, the appeal of the insurance company must be accepted. The impugned judgment to the extent it directed the insurance company to bear the responsibility for payment of the compensation is set aside.