KAIIATHAL Vs. NEW INDIA ASSURANCE COMPANY LIMITED

JUDGEMENT

(1.) The appellants are legal representatives of the deceased, who was the owner of the tractor, which hit him resulting in his death. The appellants made a claim for compensation for the death of the deceased. The insurance company resisted the claim on the ground that the insurance policy covers only third party risk and not the risk to the life of the insured himself. The Tribunal came to the conclusion that the owner of the vehicle should be construed as a third party, as he was walking along the road at the time of the accident and, therefore, awarded compensation. The question before the learned single Judge was as to whether the legal representatives of the insured can claim compensation from the insurer. Relying on section 147 of the Motor Vehicles Act, 1988, the learned single Judge came to the conclusion that the insurer is not liable to indemnify the liability of the owner, for the death of a person who himself is the insured. The learned single Judge also held that as the owner cannot take advantage of his own servants fault and claim compensation, his legal heirs also cannot claim compensation. He, therefore, allowed the appeal filed by insurance company against the legal representatives of the deceased. Hence the present appeal.

(2.) Learned counsel for the appellants submits that the words any person in the relevant section would cover the insured also. Reliance was placed on Chimajirao Kanhojirao Shirke v. Oriental Fire & General Ins. Co. Ltd., 2001 ACJ 8 (SC), where the Supreme Court awarded compensation to the legal heirs of the injured who died in an accident. Learned counsel for the insurance company has relied on a decision of the Apex Court in the case of National Insurance Co. Ltd. v. Nicolletta Rohtagi, 2002 ACJ 1950 (SC), wherein the Apex Court traced the legislative history with regard to motor accident claims and held that the intention of the legislature was to protect only third party rights and, therefore, the legal representatives of the insured cannot claim compensation for the death of the insured himself.

(3.) A Division Bench of this court in L.P.A. No. 187 of 1999, decided on 26.7.2000, has held that the main purpose of the policy is to indemnify the insured against loss or damage arising out of the use of the motor vehicle owned by the insured; that the policies issued for motor vehicles are not the same as policies of life insurance and that the policy is meant to cover the liabilities arising out of the use of the motor vehicle insofar as the liabilities of the owner are concerned and the owner cannot claim to be treated as third party by becoming a passenger of his own vehicle.