NATIONAL INSURANCE CO LTD Vs. KARUPPIAH

JUDGEMENT

(1.) The contract of insurance being covered by qua contract, whether the Insurance Company is liable to pay the compensation to the owner of the vehicle who died in an accident while driving the insured vehicle, is the core issue that arises for consideration in this Civil Miscellaneous Appeal.

(2.) The vehicle bearing registration No.TN 30A 1121, owned by Thiru.Gopi @ Gopu, who was a resident of Venkatesapuram, Salem, was involved in a motor accident. The insured, who was travelling in the said car, died in the accident. The legal heirs filed a claim petition before the Motor Accident Claims Tribunal, Salem, in MCOP No.736 of 2005, claiming compensation of Rs. 25 Lakhs on the ground that the driver of the car was negligent and as such, the Insurance Company is liable to pay compensation. The claim was entertained by the Tribunal, resulting in passing a award for a sum of Rs. 10,15,000/-. The decree dated 9.6.2016 is under challenge at the instance of the National Insurance company Ltd., primarily on the ground that the statutory liability of the insurer is only to the extent of indemnification of the insured against third party or in respect of damages and it would not indemnify the insured for his own death in the accident.

(3.) We have heard the learned counsel for the appellant. We have also heard the learned counsel for the claimants.