National Insurance Company Limited vs Dharam Pal

K. Kannan J.—The insurance company is on appeal denying the liability on the ground that the person that died in an accident was a

borrower of the vehicle from the owner. The contention is that the borrower stepped into the shoes of the owner himself and in terms of the

judgment of the Hon''ble Supreme Court in Ningamma and Another Vs. United India Insurance Co. Ltd., , the insurer will not be liable.

I have seen through the terms of the policy, which covers merely the risk to the insured along with the pillion rider. It also provides for risk for

flood and other natural calamities. The person that dashes against the culvert and brings death upon himself cannot leave a trail of valid cause of

action for his representatives to sue the insurer. The only liability for the insurer shall be to pay compensation under no fault basis u/s 140 of the

Motor Vehicles Act in terms of the judgment of the Hon''ble Supreme Court in Eshwarappa @ Maheshwarappa and Anr. v. C.S. Gurushanthappa

and Anr. (2004 ) 164 P.L.R. 399 (S.C.)

The award of the Tribunal is set aside and the appeal is allowed.