Bombay HC: Occupant rather than an owner of the insured car entitled to compensation
Title: Bharti W/o Sunil Dhat and Ors. v. Navnath Dagdu Dhat and Ors.
Decided on: 28th AUGUST, 2023.
+ FIRST APPEAL NO.749 OF 2020
CORAM: S. G. CHAPALGAONKAR, J
Facts of the Case:
The appellants, original claimants, were aggrieved by the judgment and award issued on 19.09.2019 by the Motor Accident Claims Tribunal, Beed. They had filed a claim seeking compensation under Section 166 of the Motor Vehicle Act for the accidental death of Sunil Navnath Dhat. The accident occurred when the deceased was a passenger in a car driven by respondent no. 2, which collided with a roadside tree. The claimants contended that the accident was due to the negligence of the driver. They further claimed that the deceased was an engineering graduate and a government contractor with substantial income.
Issues:
Whether the deceased, as a passenger in the car owned by his father, can be considered an owner for the purpose of claiming compensation?
Whether the insurer is liable to pay compensation for the death of the deceased?
Contentions:
The appellants asserted that the car involved in the accident was insured under a private car package policy. This type of policy covers not only liability to third parties but also extends coverage to occupants of the insured vehicle. According to the claimants, the Tribunal wrongly concluded that the deceased, being a passenger in the car owned by his father, should be considered an owner for the purpose of compensation claims.
The appellants emphasized that the deceased was an engineering graduate and a government contractor with multiple construction projects. They argued that he had a significant income and was the primary breadwinner for the family. This supported their claim for compensation. The claimants contended that the deceased’s status as an occupant of the insured car should entitle them to claim compensation, regardless of his family relationship with the car owner.
The respondent no.3-insurer, represented by Mr. Kadethankar, argued that since the car was owned by the father of the deceased, the deceased should be treated as having stepped into the shoes of the owner. This meant that the deceased was not a third party and could not claim compensation under Section 166 of the Motor Vehicle Act. The insurer emphasized that the private car package policy had specific terms and conditions, including a premium that covered occupants’ risks up to a certain limit (Rs. 1,00,000 each). They maintained that their liability was confined to the terms of the contract, and any expansion of this liability would be contrary to the agreement.
Decision:
The Bombay High Court deliberated on the matter and made the following key points:
- Circulars issued by Tariff Advisory Committee (TAC) and Insurance Regulatory and Development Authority (IRDA) mandating insurance coverage for occupants of private cars under package policies.
- The car in question was insured under a package policy, and thus the insurer was liable for the occupant’s death.
- The deceased’s status as an occupant rather than an owner of the insured car, despite being a family member, entitles the claimants to compensation.
The Bombay High Court allowed the appeal, quashed the previous judgment and award, and ruled that the respondents were jointly and severally liable to pay compensation to the claimants for the accidental death of the deceased. The compensation amount was determined based on various factors, including income, future prospects, and deductions, and the court ordered the insurer to pay the specified compensation along with interest.
“PRIME LEGAL is a full-service law firm that has won a National Award and has more than 20 years of experience in an array of sectors and practice areas. Prime legal fall into a category of best law firm, best lawyer, best family lawyer, best divorce lawyer, best divorce law firm, best criminal lawyer, best criminal law firm, best consumer lawyer, best civil lawyer.”
Written by- Aparna Gupta, University Law College & Dept. of Studies in Law
