ORIENTAL INSURANCE CO LTD Vs. BADRI PRASAD KHANDELWAL

JUDGEMENT

(1.) This appeal is directed against the order dated 8th February 1994 passed by the Consumer Disputes Redressal Commission, Rajasthan at Jaipur.

(2.) The facts giving rise to this appeal are that a tanker belonging to Badri Prasad Khandelwal, complainant No. 1 was insured with the Oriental Insurance Company against third party risk. In the tanker, 12,000 litres diesel belonging to M/s. Hindustan Petroleum Corporation Ltd., complainant No. 1, was being transported from Jaipur to Lalsot. When the tanker was at a distance of 2-3 kms. from Lalsot, the steering of the motor vehicle broke down, the vehicle went out of control and overturned. On account of that accident, the diesel contained in the tanker spread over the road and there was a complete loss of the diesel to the extent of Rs. 66,779/-. An amount of Rs. 57,482/- was recovered from complainant No. 1 by M/s. Hindustan Petroleum Corporation Ltd., complainant No. 2 as damages for the loss of the diesel. Badri Prasad Khandelwal, complainant No. 1 preferred a complaint before the State Commission that the tanker was covered under third party risk and they had paid damages to M/s. Hindustan Petroleum Corporation Ltd. and they were entitled to be indemnified by the Insurance Company. In these premises, an amount of Rs. 1,17,827/- was claimed from Insurance Company.

(3.) The claim was resisted on behalf of the Insurance Company. The main contention raised on behalf of the Insurance Company was that the complainant No. 1 had only discharged its contractual liability towards M/s. Hindustan Petroleum Corporation Ltd. and the Insurance Company was not liable under the terms of insurance policy for the contractual liability of complainant No. I.