The Branch Manager, New INDIA Assurance Co. LTD. vs. Januka Sharma And Ors.
Held
The High Court held that the insurance policy was a 'Private Car Liability Policy' with 'Basic TP Cover' and no additional premium was paid to cover gratuitous passengers. The Court found that the non-striking out of 'Package Policy' was a human error and did not extend coverage. Thus, the Insurance Company was not liable for the compensation awarded by the Tribunal.
Facts
The Motor Accidents Claims Tribunal awarded compensation for deaths in a motor accident. The appellant Insurance Company challenged this, arguing that the deceased were gratuitous passengers in a private vehicle, and the insurance policy, being a 'Private Car Liability Policy' with 'third party cover', did not cover them as no additional premium was paid for gratuitous passengers. The claimants contended it was a 'Package Policy'.
Key Issues
The key legal issue was whether the appellant Insurance Company was liable to pay compensation for gratuitous passengers under a 'Private Car Liability Policy' when no additional premium was paid for such coverage.
Sections Cited
Section 173 of the Motor Vehicles Act, 1988, Rule 3 of the Central Motor Vehicles rules, 1988
AI-generated summary — verify with the full judgment below
THE HIGH COURT OF SIKKIM : GANGTOK
(Civil Appellate Jurisdiction)
DATED : 20th December, 2021 ------------------------------------------------------------------------------------------------------------
SINGLE BENCH : THE HON’BLE MRS. JUSTICE MEENAKSHI MADAN RAI, JUDGE ------------------------------------------------------------------------------------------------------------ MAC App. No.04 of 2020 0
Appellant : The Branch Manager, New India Assurance Co. Ltd.
versus
Respondents : Smt. Geeta Khatiwara and Others Appeal under Section 173 of the Motor Vehicles Act, 1988 --------------------------------------------------------------------------------------- Appearance
Mr. Sudesh Joshi, Advocate for the Appellant.
Mr. N. Rai, Senior Advocate with Mr. N. T. Sherpa for Respondents- Claimants No.1 to 5. Mr. Umesh Gurung, Advocate for Respondent No.6. --------------------------------------------------------------------------------------- and MAC App. No.05 of 2020 0
Appellant : The Branch Manager, New India Assurance Co. Ltd.
versus
Respondents : Smt. Januka Sharma and Other
The judgment continues below.
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