HC rejects insurance co plea against accident relief

Madurai: Madras high court has dismissed an appeal filed by an insurance company on the ground that it had not mentioned before the tribunal that the vehicle had no insurance coverage at the time of the accident.

In February 2016, Stephen Arulsamy was knocked down by a lorry near Kanikkaipuram main road in Thanjavur. He sustained severe injuries and underwent surgery at a private hospital. After his recovery, Arulsamy filed a petition before Thanjavur motor accident claims tribunal seeking compensation. The tribunal held that the lorry driver was responsible for the accident and awarded a compensation of Rs 9.2 lakh. The insurance company challenged the order through the present civil miscellaneous appeal before HC Madurai bench in 2017.

Justice T Krishnavalli observed that the main contention of the appellant insurance company is that at the time of accident, the lorry had no insurance coverage and hence, the company is not liable to pay the compensation. The judge said that the company had not mentioned this fact before the tribunal. The company contended that it came to know about the fact only at the time of filing the appeal before this court.

“The records in respect of the accident were maintained only by the insurance company. It is their bounden duty to verify whether the offending vehicle (lorry) had insurance coverage at the time of accident. It shows their careless attitude. The claimant cannot be put to hardship for the failure on the part of the insurance company,” observed the judge.

The judge further said that the claimant produced the insurance policy copy to show that at the time of accident, the lorry had insurance coverage. Hence, the tribunal correctly came to the conclusion that the company was liable to pay compensation. However, the judge said the claimant is not entitled to compensation under the head of loss of marital pleasure and future medical expenses and accordingly. Hence, the judge reduced the compensation amount from Rs 9,16,074 to Rs 6,16,074 and directed the insurance company to disburse the modified amount.

Source: The Times of India

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