The Branch Manager, New INDIA Assurance Co. LTD. vs. Geeta Khatiwara And Ors.
Held
The High Court held that the insurance policy was a third-party cover and no additional premium was paid to cover gratuitous passengers. The Court found that the mention of 'Package Policy' not being struck out was a human error and did not alter the policy's scope. Therefore, the Insurance Company was not liable to pay compensation for the gratuitous passengers.
Facts
The Motor Accidents Claims Tribunal awarded compensation to claimants for deaths in a motor accident. The appellant, New India Assurance Co. Ltd., challenged this, arguing that the deceased were gratuitous passengers in a private vehicle, and their insurance policy was a 'Private Car Liability Policy' with 'Basic TP Cover' only, without additional premium for gratuitous passengers.
Key Issues
The key legal issue was whether the 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, despite the policy document not explicitly striking out 'Package Policy'.
Sections Cited
None
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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