Branch Manager, Oriental Insurance Company Ltd. Theni v. N. Muthulakshmi
2015-01-27
D.HARIPARANTHAMAN
body2015
DigiLaw.ai
Judgment 1. The only issue argued in this appeal is that the Tribunal committed error in directing the Insurance Company to pay the amount of compensation and directing to recover the same from the 6th respondent herein, who is the driver and owner of the vehicle. 2. The Insurance Company has not questioned the quantum of compensation. It is a case of death. The first respondent lost her husband at the age of 32 years. The 2nd and 3rd minor respondents lost their father and the 4th and 5th respondents lost their son. The multiplier adopted by the Tribunal was at 16, taking into account the age of the deceased as 38 years. The Tribunal awarded Rs.4,37,000/- with 7% interest and the compensation awarded under various heads. Both parties are agreed that the Tribunal has awarded Rs.4,37,000/-. 3. It is now well settled that the Apex Court and this Court in a catena of the following decisions, has consistently taken a view that the insurer shall pay the compensation and thereafter, they shall recover the amount from the vehicle owner, whenever the compensation was ordered on the ground that the driver did not posses valid license. The decisions are as follows: (i) Jawahar Singh vs. Bala Jain, 2011 (1) TN MAC 641 (SC) (ii) S. Iyyapan vs. United India Insurance Co. Ltd. (2013) 7 Supreme Court Cases 62 (iii) United India Insurance Company Limited vs. V. Vijayakumar, 2010 (2) TN MAC 388 (DB) (iv) Bajaj Allianz General Insurance Company Ltd. vs. P. Manimozhi, 2010 (2) TN MAC 542 (DB) (v) United India Insurance Co. Ltd. vs. S. Saravanan & Another (DB), 2009 (2) TN MAC 103 (DB) 4. The learned counsel for the respondent has also relied in a decision in Oriental Insurance Co. Ltd. vs. Shri Nanjappan and others, (2004) ACC 524 (SC), wherein the Apex Court has held that how to recover the award amount from the owner of the vehicle. The relevant portion in para 7 is extracted herein: "For the purpose of recovering the same from the insured, the insurer shall not be required to file a suit. It may initiate a proceeding before the concerned Executing Court as if the dispute between the insurer and the owner was the subject matter of determination before the Tribunal and the issue is decided against the owner and in favour of the insurer.
It may initiate a proceeding before the concerned Executing Court as if the dispute between the insurer and the owner was the subject matter of determination before the Tribunal and the issue is decided against the owner and in favour of the insurer. Before release of the amount to the insured, owner of the vehicle shall be issued a notice and he shall be required to furnish security for the entire amount which the insurer will pay to the claimants. The offending vehicle shall be attached, as a part of the security. If necessity arises the Executing Court shall take assistance of the concerned Regional Transport Authority. The Executing Court shall pass appropriate orders in accordance with law as to the manner in which the insured, owner of the vehicle shall make payment to the insurer. In case there is any default it shall be open to the Executing Court to direct realisation by disposal of the securities to be furnished or from any other property or properties of the owner of the vehicle, the insured. The appeal is disposed of in the aforesaid terms, with no order as to costs." 5. In view of the categorical pronouncement of this Court and the Apex Court as referred to above, there is no merit in the appeal and the appeal is disposed of. The Insurance company is directed to deposit the balance amount within a period of six weeks from the date of receipt of a copy of this order. The respondents 1, 4 and 5/claimants 1, 4 and 5 are permitted to withdraw their entire respective shares. The share of the minor claimants 2 and 3 shall be deposited before any one of the nationalised banks, till they attain majority and they are permitted to withdraw the interest once in three months directly from the bank. No costs. Consequently, connected miscellaneous petitions are also dismissed.