NATIONAL INSURANCE CO LTD Vs. M. PADMINI

JUDGEMENT

(1.) The Insurance Company which was made liable along with the owner of a jeep to pay a compensation of Rs. 6,80,000.00 with interest @ 7.5% per annum to the claimant, a passenger in the jeep for the injuries the latter had suffered, consequent to an accident involving the said jeep on 19.12.2004, challenges the liability fastened on it, in particular the application of doctrine of pay and recover.

(2.) The learned counsel for the appellant submitted that the policy cover as evidenced by Ex.R1 is only an "Act Policy" that it does not cover any injury or death to passengers and unless a specific contract for covering the death or injury to the passengers is entered into with the insurer on payment of additional premium, the insurance company shall not be mulcted with any liability. The learned counsel submitted that the Tribunal has correctly arrived at a conclusion on the question of insurance company's liability to pay the compensation, but it went wrong in applying the doctrine of "pay and recover" which was not available where there is no policy.

(3.) In response, the learned counsel for the respondents 1 to 4/claimants contended that the genuineness of the very policy is suspected since it is not a carbon copy or xerox copy, but only a computer print out and that there is variance in the policy number, both at the top and in the bottom of each of the pages of the document that constitute Ext.R-1. Arguing further, the learned counsel contented that the owner of the vehicle has paid Rs. 350.00 as " loading TP" and this is an additional premium that the insurance company insists as the one required to be paid, and hence it would take within its fold the insurance cover for the passenger of the vehicle. He added that as per the limitations mentioned in Ext.R-1 insurance policy, it covers the use of the vehicle for any purpose other than for 'hire or reward' and that on facts P.W.2 has deposed in his cross-examination that no fare was paid for travel in the jeep at that relevant time. When no fare is paid, it falls outside the purview of limiting circumstances stipulated in the policy and therefore, the insurance company cannot seek any exit route for escaping its liability.