New India Assurance Co. Ltd. vs Meera Bai and Others

Heard counsel for the parties.

Special leave granted.

It is submitted on behalf of the appellant insurance company that the High Court was clearly in error in awarding a sum of Rs. 1,99,500/- by way of compensation along with interest @ 9% p.a., in view of the fact that the policy of insurance did not cover the risk of the owner of the vehicle, who was the insured. He relies upon a decision of this Court in Dhanraj Vs. New India Assurance Co. Ltd. and Another, and contends that the judgment clearly lays down that in the absence of coverage in respect of the owner, the claim could not be sustained. We have perused the aforesaid judgment. It does support the case of the appellant.

Counsel for the respondents submits that the insurance policy does cover the risk to the driver of the vehicle and drew our attention to the insurance schedule. We find that schedule covers the "paid driver and/or conductor". Obviously, the owner, who is himself driving the vehicle, is not covered under the policy. In this view of the matter, this appeal has to be allowed.

We accordingly allow the appeal, set aside the judgment and order passed by the High Court. No order as to costs.