National Insurance Co. Ltd. directed to pay and given liberty to recover from the insured after due process.
In a significant ruling, the Calcutta High Court has revised the compensation awarded in a motor accident claim from Rs. 470,000 to Rs. 500,000, recognizing the welfare nature of the Motor Vehicles Act. The judgment, delivered by Justice Biswaroop Chowdhury, addresses the appeal made by National Insurance Co. Ltd. against the previous decision of the Additional District Judge Fast Track 3rd Court Berhampore Murshidabad.
The case arose from a tragic accident on March 29, 2015, when Saidul Mondal was fatally injured while riding his bicycle, hit by a truck. The trial court had initially awarded Rs. 470,000 to the claimant, Lirasa Bibi, which was contested by both the insurance company and the claimant in a cross-objection.
The High Court found that the trial court erred in not awarding the full Rs. 500,000 as stipulated under Section 164 of the Motor Vehicles Act, emphasizing the statute's welfare intent. The court directed National Insurance Co. Ltd. to pay the enhanced compensation along with interest at 6% per annum from the filing date of the claim until realization.
Moreover, the court provided the insurance company with the option to recover the compensation from the insured, Subrata Nath, following due procedure. This includes conducting an inquiry and providing the insured an opportunity to be heard, particularly regarding any policy violations, such as the alleged driving of a truck with a non-transport vehicle license.
This judgment not only reinforces the welfare aspect of the Motor Vehicles Act but also underscores the responsibilities of insurance companies to ensure genuine claims are settled promptly, without unnecessary harassment of vehicle owners. The court highlighted the need for insurance companies to conduct thorough inquiries and provide evidence in court before alleging policy violations.
The High Court's decision will be circulated to all Motor Vehicle Claims Tribunals and District Judges in West Bengal and the Andaman and Nicobar Islands to guide similar cases involving pay and recovery.
Bottom Line:
Motor Vehicles Act - Compensation under Section 164 enhanced to Rs. 500,000/- considering the welfare nature of the legislation. Insurance Company granted liberty for recovery of compensation from the insured following due procedure.
Statutory provision(s): Motor Vehicles Act, 1988 Sections 163A, 164
National Insurance Co. Ltd. v. Lirasa Bibi, (Calcutta) : Law Finder Doc id # 2849233
