Karnataka High Court: Ashok S. Kinagi J., allowed the appeal and applied the pay and recover principle fastening the liability on the owner to pay the compensation.
The facts of the case are such that the claimant was sitting in the backside of the auto-rickshaw, the driver was driving rashly and negligently without following traffic rules and regulations and dashed the same to a motorcycle which was going in front of auto-rickshaw because of which the auto turned turtle and the claimant sustained grievous injuries in the said accident. Thus, a claim petition was filed before the Tribunal for compensation which was thereby granted by holding that the respondents are jointly and severally liable to pay it. Being aggrieved by the same, the present appeal was filed.
Counsel for the appellants submitted that the tribunal has committed an error in fastening the liability on the insurer as the vehicle was plying outside the permitted limit and hence the insurance is not liable to pay compensation.
Counsel for the respondents supported the impugned judgment and award.
The Court relied on judgment Shamanna and Divisional Manager, Oriental Insurance Co. Ltd., 2018 ACJ 2163 and observed that when there is a breach of policy conditions and the policy is in force as on the date of the accident, it is for the insurance company to pay the compensation amount and recover the same from the owner.
The Court thus held that the permit disclosed that offending vehicle was permitted to ply within 16 km from Savdatti but in fact, the accident has occurred outside the limit of Savadatti i.e., outside of 16 km from the permit limit. It was further observed that on the date of the accident the insurance policy was in force but at the time of the accident, the vehicle did not have permit at the accident spot. Thus there is a clear violation of policy conditions.
In view of the above, the appeal was allowed in part directing the insurer to pay the compensation amount and recover the same from the owner.[Divisional Manager v. Riyaz Ahmed, M.F.A. No. 100275/2015 (MV), decided on 06-02-2020]
Arunima Bose, Editorial Assistant has put this story together
