ORIENTAL INSURANCE CO. LTD. versus JHUMA SAHA AND ORS.

ORIENTAL INSURANCE CO. LTD. versus JHUMA SAHA AND ORS.

The additional premium was not paid for covering the entire risk of death or bodily injury to the owner of the vehicle; therefore, Section 147(1)(b) of the Motor Vehicles Act, 1988, which covers risk of a third party only, is attracted, and the insurer cannot be fastened with any liability towards the owner.

Parties
Appellant: Oriental Insurance Co. Ltd.; Respondents: Jhuma Saha and Ors.
Jurisdiction
India
Judgment Date
16 January 2007
Procedural Posture
Civil Appeal / Appeal From Judgment and Order Dated 28.10.2003 of the Gauhati High Court in C.r.p. No. 69/2003
Outcome
Appeal allowed; impugned judgment reversed.
Legal Topics
Third Party Insurance, Liability of Insurer, Owner's Risk, Motor Vehicles Act Section 147
Insurance Law Motor Vehicle Accident Claims Third Party Insurance Liability of Insurer Owner's Risk Motor Vehicles Act Section 147

Case Brief

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Parties

Oriental Insurance Co. Ltd.

Appellant

Jhuma Saha and Ors.

Respondents

Procedural Posture

Civil Appeal / Appeal From Judgment and Order Dated 28.10.2003 of the Gauhati High Court in C.r.p. No. 69/2003

Legal Issues

  1. 1 Whether the insurer is liable to compensate the owner of an insured vehicle who died while driving the said vehicle under a third party insurance policy when no additional premium was paid for owner's risk

Ratio Decidendi

The additional premium was not paid for covering the entire risk of death or bodily injury to the owner of the vehicle; therefore, Section 147(1)(b) of the Motor Vehicles Act, 1988, which covers risk of a third party only, is attracted, and the insurer cannot be fastened with any liability towards the owner.

Court Disposition

Appeal allowed; impugned judgment reversed.

Orders

  • Impugned judgment of Gauhati High Court dated 28.10.2003 in C.R.P. No. 69/2003 is set aside.
  • Claim against the insurer is dismissed.