National Insurance Company Limited And Others vs Govind Dan Charan And Others

Rekha Borana, J

The present appeals have been preferred against the common judgment and award dated 05.09.2023 passed by the Motor Accident Claims Tribunal No.2, Udaipur in MAC Case Nos.381/2023 (CIS No.721/2021), 382/2023 (CIS No.40/2022) & 379/2023 (CIS No.535/2021) whereby the learned Tribunal awarded a compensation of Rs.2,04,500/-, 1,21,000/- & 3,30,100/- respectively, in favour of the injured claimants.

Only one ground has been raised by learned counsel for the Insurance Company before this Court that the vehicle in question did not have a valid permit and hence, the Insurance Company could not have been held liable to pay the compensation.

A perusal of the impugned award makes it clear that the learned Tribunal has specifically held that there was a breach of condition of the policy and hence, respondent Nos.2 & 3 would only be liable to pay the compensation but the primary responsibility has been laid on the Insurance Company to pay the amount of compensation to the claimants and then recover the same from the owner and driver. Meaning thereby, the Insurance Company has not been held liable to pay compensation but has been held entitled to “Pay & Recover”.

In the specific opinion of this Court, the said direction is totally in consonance with law and in consonance with the ratio as laid down in the judgment passed by the Hon’ble Apex Court in the case of Amrit Paul Singh & Anr. vs. Tata AIG General Insurance Company Limited & Ors., (2018) 7 SCC 558, wherein it was held as under:-

“24…. Nothing has been brought on record by the insured to prove that he had a permit of the vehicle. In such a situation, the onus cannot be cast on the insurer. Therefore, the Tribunal as well as the High Court had directed that the insurer was required to pay the compensation amount to the claimants with interest with the stipulation that the insurer shall be entitled to recover the same from the owner and the driver. The said directions are in consonance with the principles stated in Swaran Singh and other cases pertaining to pay and recover principle.”

The said finding/direction of the learned Tribunal hence, does not deserve any interference.

So far as the quantum of compensation is concerned, no effective ground qua the same has been raised by learned counsel for the appellants and hence, the same also does not deserve any interference.

In view of the above observations, the present appeals being devoid of merit are hereby dismissed.

Stay petitions and all pending applications, if any, stand disposed of.