SOMBIR Vs. RELIANCE GENERAL INSURANCE COMPANY

JUDGEMENT

(1.) PRESENT appeal has been filed by appellant -Sombir in his capacity as driver and owner of the Tata 407 vehicle bearing registration No.HR -61A -0348, whereby the Motor Accident Claims Tribunal, Jhajjar (hereinafter to be referred as 'The Tribunal'), fastened the liability on appellant -owner to make the payment of awarded compensation i.e. Rs. 1,58,924/ - and insurance company was held liable to the extent of Rs. 6,000/ - only.

(2.) RELEVANT facts of the case that on 19.09.2010, Tata 407 vehicle bearing registration No.HR -61A -348 was involved in the accident and said accident resulted into damage to the house of the petitioner. As per claimant his house was substantially damaged and claimant had to spend Rs. 7,00,000/ - on reconstruction of the said house and filed claim petition against driver and registered owner of the vehicle and insurance company of the offending vehicle. Respondents contested the claim petition. Respondent No.1 admitted that house of petitioner was slightly damaged in the accident and respondent No.2 -insurance company took the plea that respondent No.1 was not having any valid licence to drive offending vehicle on the date of accident and insurance company is not liable to make the payment.

(3.) MR . Sumit Gupta, learned counsel for the appellant took the plea that the entire amount of compensation is to be paid by the insurance company, as he had obtained package policy from the insurance company and as per the general regulations issued by the Tariff Advisory Committee, it was clearly mentioned that the policy covered liability with respect to the third party liability for bodily injury or death and property damage. The limits with respect to property damage was '7.5 lacs. 'The Tribunal' fell in error while fastening the liability upon appellant. On this point, reliance has been placed upon judgment from Hon'ble Supreme Court in case New India Assurance Company Ltd. Vs. Sadanand Mukhi and others, 2009 1 RCR(Civ) 817, wherein it was held that the contract of insurance of a motor vehicle is governed by the provisions of the Insurance Act. The terms of the policy and the quantum of premium payable for insuring the vehicle in question depends not only upon the carrying capacity of the vehicle but also on the purpose for which the same was being used and the extent of the risk covered thereby. By taking an 'act policy', the owner of the vehicle fulfils his statutory obligation as contained in Section 147 of the Act. The liability of the insurer is either statutory or contractual. If it is contractual liability, the same extends to the risk covered by the policy of insurance. If additional risk are sought to be covered, additional premium has to be paid.