NATIONAL INSURANCE COMPANY LIMITED Vs. DHARAM PAL

JUDGEMENT

(1.) The insurance company is on appeal denying the liability on the ground that the person that died in an accident was a borrower of the vehicle from the owner. The contention is that the borrower stepped into the shoes of the owner himself and in terms of the judgment of the Hon'ble Supreme Court in Ningamma and Anr. v. United India Insurance Co Ltd, 2009 ACJ 2010, the insurer will not be liable.

(2.) I have seen through the terms of the policy, which covers merely the risk to the insured along with the pillion rider. It also provides for risk for flood and other natural calamities. The person that dashes against the culvert and brings death upon himself cannot leave a trail of valid cause of action for his representatives to sue the insurer. The only liability for the insurer shall be to pay compensation under no fault basis under Section 140 of the Motor Vehicles Act in terms of the judgment of the Hon'ble Supreme Court in Eshwarappa @ Maheshwarappa and Anr. v. C.S. Gurushanthappa and Anr., 2010 160 PunLR 399

(3.) The award of the Tribunal is set aside and the appeal is allowed.