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2017 DIGILAW 470 (ORI)

Sri Laxmidhara Praharaj v. Munchi Abdul Meheraj

2017-04-25

S.C.PARIJA

body2017
ORDER 25.04.2017. Heard learned Counsel for the parties. This appeal by the claimants-appellants is directed against the judgment/award dated 08.12.2005, passed by the leaned IIIrd Motor Accident Claims Tribunal, Balasore, in MAC No.102/125 of 2000/1998, awarding an amount of Rs.3,67,000/- as compensation along with interest @ 6% per annum from the date of passing of the award, till realization and directing the owner-respondent No.1 to pay the same. Learned Counsel for the claimants-appellants submits that as the Insurance Company had not intimated to the concerned Regional Transport Officer regarding cancellation of the policy, as required under law, the insurer is liable to pay the awarded compensation amount. It is submitted that in absence of an intimation to the concerned Regional Transport Officer regarding cancellation of the insurance policy, as required under Section 147 (4) of the M.V. Act, 1988, the Insurance Company is liable to the third party with the right of recovery against the insured-owner. Learned Counsel for the Insurance Company-respondent No.2 submits that as the insurance policy issued in respect of the offending vehicle had been cancelled much prior to the date of the accident, for non-payment of the premium amount, due to the dishonour of the cheque issued by the insured-owner towards premium, no liability can be saddled on the present appellant, as the insurer of the offending vehicle. In this regard, it is submitted that as the Insurance Company adduced evidence before the learned Tribunal with regard to the cancellation of the insurance policy prior to the date of the accident, learned tribunal was fully justified in saddling the liability on the owner of the vehicle. It is further submitted by learned Counsel for the Insurance Company that the assessment of the compensation amount is not proper and justified and the award is on the higher side. On a perusal of the impugned award, it is seen that the Insurance Company had taken the plea that the policy issued in respect of the offending vehicle had been cancelled much prior to the date of the accident, for non-payment of the premium amount by the owner-insured. The Insurance Company produced the letter (Ext. F) and postal receipt (Ext.G) in support of its claim that the fact regarding cancellation of policy had been duly intimated to the owner-insured. The Insurance Company produced the letter (Ext. F) and postal receipt (Ext.G) in support of its claim that the fact regarding cancellation of policy had been duly intimated to the owner-insured. Basing on such materials, learned tribunal has proceeded to hold that the Insurance Company is not liable and has saddled the liability on the owner of the offending vehicle. Admittedly, no material had been produced by the Insurance Company before the learned Tribunal to show that such intimation regarding cancellation of policy had been given to the concerned Registering Authority. Therefore, in absence of an intimation to the concerned Registering Authority regarding cancellation of the insurance policy issued in respect of the offending vehicle, as required under Section 147 (4) of the M.V. Act, the insurer is liable to pay the awarded compensation amount to the claimants, with the right to recover the same from the owner of the vehicle. Coming to the quantum of compensation amount awarded and the basis on which the same has been arrived at, I feel, the interest of justice would be best served, if the awarded compensation amount of Rs.3,67,000/- is modified and reduced to Rs.3,00,000/- (Rupees Three lakhs), which is payable to the claimants-respondents along with the awarded interest. The impugned award is modified to the said extent. Accordingly, the findings of the learned Tribunal absolving the insurer of its liability and directing the owner of the vehicle (insured) to pay the awarded compensation amount is set aside. Instead, the Insurance Company is held liable to pay the same with the right to recover the same from the owner of the vehicle, in accordance with law. The Insurance Company-respondent No.2 is directed to deposit the modified compensation amount along with interest with the learned Tribunal within six weeks hence. MACA is accordingly disposed of. MACA disposed of.