JAYAVARAPU RAJAMMA Vs. JAYAVARAPU LAXMINARAYANA

JUDGEMENT

(1.) The question as to whether, in the facts and circumstances, the insurance company can be made liable for compensation in respect of the claims made by the owner or the legal representatives of the deceased as third party claims, is the subject matter of the reference by one of us (Hon'ble Sri Justice B. Prakash Rao).

(2.) The motor accident in question occurred when the owner/insured was travelling in the car along with his family members and his father died in the accident. The mother and two other sons of the deceased made the claim for compensation against the owner who himself was driving the car, the owner of the lorry and the respective insurance companies. The Tribunal while holding that the accident occurred due to the negligent driving of the car, held that the father or the other family members of the insured will not fit within the ambit of third party as the insured and the deceased are living under one roof being father and son. The Tribunal accordingly dismissed the petition without costs holding the insurance company to be not liable to pay the compensation.

(3.) The claimants preferred the appeal contending that the kith and kin of the insured are third parties entitled to make the claim. When the appeal came up for hearing, the decisions in National Insurance Company Limited v. Seema Malhotra and Dhanraj v. New India Assurance Company Limited were respectively relied on. As there was variance regarding the liability of the insurance company in respect of the claims by the owners or the legal heirs of the deceased, which question is likely to come up again and again, it was felt desirable that the same should be decided for the guidance of the Tribunals.