SHAMANNA AND ANOTHER versus THE DIVISIONAL MANAGER THE ORIENTAL INSURANCE CO. LTD. AND ORS.

SHAMANNA AND ANOTHER versus THE DIVISIONAL MANAGER THE ORIENTAL INSURANCE CO. LTD. AND ORS.

The award passed by the Tribunal, which directed the insurance company to pay the compensation and recover it from the owner of the vehicle, is in accordance with prevailing Supreme Court pronouncements; the High Court erred in exonerating the insurance company from liability solely on the ground of lack of power under Article 142.

Parties
Appellants/claimants: Shamanna and another; Respondent/insurer: The Divisional Manager, The Oriental Insurance Co. Ltd.
Jurisdiction
India
Judgment Date
08 August 2018
Procedural Posture
Civil Appeal / Appeal From High Court of Karnataka at Dharwad Bench, Judgment Dated 14.09.2016 in MFA No. 24534/2010 (mv)
Outcome
Appeal partly allowed.
Legal Topics
Third Party Insurance Liability, Compensation in Motor Vehicle Accidents, Doctrine of Pay and Recover
Motor Vehicles Law Insurance Law Third Party Insurance Liability Compensation in Motor Vehicle Accidents Doctrine of Pay and Recover

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Parties

Shamanna and another

Appellants/claimants

The Divisional Manager, The Oriental Insurance Co. Ltd.

Respondent/insurer

Procedural Posture

Civil Appeal / Appeal From High Court of Karnataka at Dharwad Bench, Judgment Dated 14.09.2016 in MFA No. 24534/2010 (mv)

Legal Issues

  1. 1 Whether the insurance company is liable to pay compensation to third party claimants in case of breach of policy conditions and recover the same from the vehicle owner
  2. 2 Whether the High Court was right in exonerating the insurance company from liability and holding only the owner liable

Ratio Decidendi

The award passed by the Tribunal, which directed the insurance company to pay the compensation and recover it from the owner of the vehicle, is in accordance with prevailing Supreme Court pronouncements; the High Court erred in exonerating the insurance company from liability solely on the ground of lack of power under Article 142.

Court Disposition

Appeal partly allowed.

Orders

  • High Court judgment exonerating the insurance company from liability and directing claimants to recover compensation from owner is set aside.
  • Order of the High Court enhancing compensation to Rs.4,94,700/- is affirmed.