Shriram General Insurance Co. Ltd. held liable for compensation; claimants not considered gratuitous passengers in the vehicular accident case
In a significant judgment, the Jammu and Kashmir High Court has upheld the Motor Accidents Claims Tribunal's decision, affirming that Shriram General Insurance Co. Ltd. is liable to compensate the claimants in a road accident case. The case involved a vehicular accident where a tractor, driven negligently, caused injuries to several pedestrians, including the claimants, Ramesh Chander and Pritam Singh, on March 19, 2012, near Khandli Bridge in Rajouri district.
The insurance company had appealed against the Tribunal's awards of Rs. 3,23,000 and Rs. 2,16,000 granted to the claimants, arguing that they were gratuitous passengers, which would exempt the insurer from liability. However, the Tribunal found that the claimants were pedestrians at the time of the accident, and this was corroborated by oral and documentary evidence presented during the proceedings.
Presiding Judge, Mr. M.A. Chowdhary, emphasized the importance of evidence recorded before the Tribunal over the contents of the FIR, especially when contradictions arise. The judgment reinforced the principle that the insurer must fulfill its contractual obligations unless clear evidence suggests otherwise.
The High Court's decision aligns with precedents from the Supreme Court and other judgments, underscoring that insurers are liable for compensating third parties injured due to the negligence of the insured's driver, even if the insurance policy terms exclude gratuitous passengers.
The insurance company had attempted to rely on the FIR and the chargesheet, which did not explicitly name the injured parties or establish them as passengers in the offending vehicle. However, the court found that these documents did not substantiate the insurer's claims, thus upholding the Tribunal's decision to favor the pedestrians.
This judgment serves as a reminder of the judiciary's role in ensuring fair compensation to victims of road accidents and holding insurance companies accountable for their contractual duties.
Bottom Line:
Motor Vehicles Act - Gratuitous passengers - Compensation by insurer for injuries or disabilities caused due to negligence of the driver - Tribunal's decision upheld that claimants were not gratuitous passengers traveling in the offending vehicle - Insurer liable for compensation under contractual obligations towards the insured.
Statutory provision(s): Motor Vehicles Act, 1988 Section 166, Sections 279/337 RPC
