NEW INDIA ASSURANCE CO LTD Vs. VIGNAM

JUDGEMENT

(1.) The appeal against the award passed by the Motor Accident Claims Tribunal, Vellore in M.C.O.P.No.1771/2013, is filed by the Insurance Company, on being aggrieved by the award fixing responsibility to pay the award amount of Rs.6,88,000/- to the claimants and to recover from the vehicle owner.

(2.) The brief facts of the case is that, on 29/06/2010 at about 4.30 am, the lorry bearing registration No. TN 28 R 7286 on the Chennai to Bangalore High ways at Sathuvacharri opposite to GS Mahal hit the rear of the lorry going ahead. The driver and the cleaner of the lorry died due to the impact. The parents of the driver filed claim petition under Section 163 A of the Motor Vehicles Act against the owner and the insurer of the lorry. The Tribunal awarded Rs.6,88,000/- as compensation with 7.5% interest and permitted the insurer the liberty to recover the same from the owner of the vehicle since, the deceased driver had no valid driving license.

(3.) The said award is challenged in this appeal by the insurer on the ground that, the Tribunal erred in entertaining the claim petition under Section 163 A of the Act, despite the claimants have mentioned the income of the deceased as Rs.10,000/- per month. When the upper cap for a claim under Section 163 A is only Rs.40,000/- per annum, the Tribunal ought not have entertained the claim petition. Further, the accident occurred due to the negligence of the lorry driver who rash and negligently dashed the rear side of the forgoing vehicle. The Tribunal failed to consider the decision of the Hon'ble Supreme Court rendered in National Insurance Company vs- Sinitha and others, 2011 8 Supreme 301, which states that it is always open to the owner or insurance company to defeat a claim under Section 163 A of the Act by pleading and establishing fault ground. Further, the violation of policy condition namely, deceased lorry driver had no valid license to drive a heavy vehicle ought to have taken into consideration by the tribunal to totally exonerate the insurer.