NATIONAL INSURANCE CO LTD Vs. SAVITHRI

JUDGEMENT

(1.) The simple question in these appeals is whether the insurer can be saddled with liability under S.92A of the Motor Vehicles Act, 1939 (for short 'the Act') without determining the dispute that the insurance policy became invalid as a consequence of violation of a condition in the policy. Motor Accidents Claims Tribunal awarded compensation in two cases to the injured under S.92A and directed the owner and his insurer to pay the amount. The Claims Tribunal observed that in the light of the decision in Mohammed Iqbal v. Bhimaiah and others ( AIR 1985 Ker. 171 = 1985 ACJ 546) that the objection regarding violation of policy condition need not be considered when the award is passed on the principle of "no fault liability". The insurance company has filed these appeals.

(2.) S.92A provides that "where the death or permanent disablement of any person has resulted from an accident arising out of the use of a motor vehicle or motor vehicles, the owner of the vehicle shall, or as the case may be, the owners of the vehicles shall, jointly and severally, be liable to pay compensation in respect of such death or disablement in accordance with the provisions of this section". No doubt, S.92A does not mention the word 'insurer'. Apparently, it is the owner alone who has to bear the liability mentioned in Chapter VII A of the Act. However, mere non mention of the word "insurer" in any of the provisions in the said Chapter is hardly sufficient to absolve the insurance company from liability under no fault theory. The succeeding Chapter which deals with insurance of motor vehicles against third party risks contains definition for the word 'liability' as this: " 'liability' wherever used in relation to the death of or bodily injury to any person includes liability in respect thereof under S.92 A". Hence the only question is whether the Claims Tribunal is debarred from passing the award against insurer without deciding the dispute that a policy condition was violated entailing the consequence of rendering the policy invalid.

(3.) S.96 of the Act casts duty on the insurer to pay to the person entitled to the benefit of the decree (award) such sum as would not exceed the coverage, "as if he were the judgment debtor". This is the statutory provision which makes the insurer liable to pay the award amount whether the award is the one passed under S.110B of the Act or under Chapter VIIA of the Act. It is not very necessary that there should be an express provision in Chapter VIIA conferring power on Claims Tribunal to give a direction to the insurer.