Madras HC in the case of M/s.The Cholamandalam MS General Insurance Company Limited

Case Covered:

M/s.The Cholamandalam MS General Insurance Company Limited

Versus

Ramesh Babu

Facts of the case:

The present Civil Miscellaneous Appeal on hand is preferred against the judgment and decree dated 10.07.2018 passed in M.C.O.P.No.27 of 2013 on the file of the Motor Accidents Claims Tribunal, III Additional District Court, Kallakurichi.

M/s.The Cholamandalam MS General Insurance Company Limited is the appellant and the learned counsel appearing on behalf of the appellant pleaded the facts by stating that on 15.06.2011, at about 06.00 a.m., while the respondent/owner was driving the Tata Indica Tourist Taxi TN-32-L8595 from Tiruvannamalai to Kallakurichi Main Road, near Vanapuram, due to unavoidable reasons, dashed against the palm tree on the roadside, resulted in the road traffic accident. The respondent is the owner of Tata Indica Tourist Taxi. Thus, the fact admitted is that the respondent, who is the owner of the vehicle, hit against the palm tree on the roadside, resulted in an accident.

The respondent/claimant filed the Claim Petition under Section 163 of the Motor Vehicles Act, seeking compensation of Rs.2,00,000/- (Rupees Two Lakhs only) from the appellant/Insurance company. The contention of the respondent was that he sustained grievous injuries due to the road traffic accident occurred on 15.06.2011. The Claim Petition was filed only against the appellant/Insurance company as the respondent car was insured with the appellant/Insurance company. The appellant has defended the Claim Petition, categorically stating that the respondent/claimant is the owner of the vehicle bearing Regn.No.TN32-L-8595, is not a third party and therefore, there is no statutory coverage is provided in terms of Section 147(1) of the Motor Vehicles Act, 1988. The respondent/claimant being the owner of the vehicle, which met with an accident, cannot be construed as a third party nor the claim is covered under the statute with reference to Section 147(1) of the Motor Vehicles Act.

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Observations of the Court:

In the present case, the Personal Accident Coverage Policy has been agreed between the appellant/Insurance company as well as the respondent. Rs.2,00,000/- is fixed under the Personal Accident Coverage Policy. The Tribunal has granted a sum of Rs.2,16,500/-towards compensation. The Tribunal has not adjudicated the maintainability of the Claim Petition by looking into the terms and conditions stipulated in the Insurance Policy. With reference to the nature of injuries, there must be an adjudication strictly with reference to the Personal Accident Coverage Policy. Suffering an injury is one aspect. The Coverage provided under the terms and conditions of the policy is also important, so as to decide the entitlement of compensation.

For instance, the Personal Accident Coverage Policy states that the compensations are payable under 4(a), which is stated in Section IV of Personal Accident Cover for owner-cum-driver. Therefore, if the injuries are within the scope of the agreement, then alone, the person covered under the Personal Accident Cover is entitled to get compensation. Even otherwise, the said entitlement cannot be adjudicated by the Motor Accident Claims Tribunal as the terms and conditions are contractual in nature and not statutory in character. Only the statutory liability is amenable to the jurisdiction of the Motor Accident Claims Tribunal and not the contractual liability. All such contractual liabilities are falling within the scope of the Indian Contract Act and the aggrieved persons to the contract can approach the competent Court of Law and not the Motor Accident Claims Tribunal under the Motor vehicles Act. 

The Decision of the Court:

Accordingly, the judgment and decree dated 10th July 2018 passed by the Motor Accidents Claims Tribunal / III Additional District Court, Kallakurichi in M.C.O.P.No.27 of 2013 is set aside and the Civil Miscellaneous Appeal in C.M.A.No.2434 of 2019 stands allowed. If the appellant/Insurance company has deposited any award amount before the Tribunal, then they are permitted to withdraw the said deposited amount with accrued interest by filing an appropriate application. No costs. Consequently, the connected miscellaneous petition is closed.

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