Motor Accident Claims in Uttarakhand – Understanding Liability & Facts

We all know that most of the accidents happen in roads because of various motor vehicles. Hence, it becomes very important to understand some basic laws  liability and facts which would:

  1. entitle you to claim compensation incase of any motor vehicle accident
  2. to ensure that all your papers & responsibilities are in order to secure your liability in case of any accident.

The law related to motor vehicle is mostly governed by The Motor Vehicles Act, 1988 and most of the provisions and law has been clarified by various Supreme court decisions.

In this article we would be covering the following

  1. Transfer of ownership but not of Insurance. – whats the legal position.
  2. 3rd Party compensation to vehicle owner – If the owner of the vehicle meets an accident can be claim compensation under his 3rd party insurance agreement?
  3. 3rd party compensation to the borrower of car who meets an accident?
  4. Defenses available to the insurance company against the owner of the company and not against the claimant.
  5. claim & Recovery- Insurance company liable to pay 3rd party charges even if there is negligence on the part of the policy holder?
  6. Goods Carrier liability – for person travelling in it and its accident.
  7. Driving License – Which class can drive above or below class of vehicles.
  8. Travelling in Tractor – what’s compensation to be paid for persons who are travelling in tractor
  9. Personal Accident Cover –  under which form can you claim this?

1. OWNER OF THE VEHICLE

The most important part from where the liability and facts start in Motor Accidents Claim is Who is the OWNER of the VEHICLE?

Section 2(30) defines who is the owner of the vehicle and is:

owner means a person in whose name a motor vehicle stands registered and where such person is a minor, the guardian of such minor, and in relation to a motor vehicle which is the subject of a hire-purchase, agreement, or an agreement of lease or an agreement of hypothecation, the person in possession of the vehicle under that agreement;

Now, the insurance policy should be issued in the name of the owner of vehicle and indemnifies him against any 3rd party losses.

2. Transfer of ownership but not of Insurance.

What would happen if the owner sells the motor vehicle and the new owner does not change the name under which Motor Insurance is made?

  1. This was answered in AIR 2006 SCC 1576. where it was held the policy runs with the vehicle & the 3rd party liability is covered.
  2. However, if the Insurance policy is NOT transferred, the new owner is not liable to cover own damages to the vehicle charges.
  3. Section 157 applies only to 3rd party and not Own party damages.

3. 3rd Party compensation to vehicle owner

If the owner of the vehicle meets an accident can he claim compensation under his 3rd party insurance agreement?

  1. Case Name – ->  1998 Supreme Court –  Oriental insurance Limited vs Sunita Ratti
  2. THE answer is BIG NO. Only 3rd Party to the policy of insurance can maintain a claim petition under any provisions of motor vehicle party.
  3. The Owner of the vehicle cannot claim compensation against his own insurance company for his personal injury & fatal accident but can claim damages for car damages.
  4. Other case laws that have reiterated the above are:
    1. 2007 SC Oriental Insurance Vs Jhuma Saha
    2. Dhanraj Vs New India Assurance
    3. Oriental Insurance Vs Rajni Devi 2008
    4. New India Insurance  Sadanand Mukhi

4. 3rd party compensation to the borrower of car

  1. Example –  Ram is owner of vehicle – Laxman borrowed vehicle. Laxman meets accident –  can he claim 3rd party insurance?
    1. Answer – That a borrower of a vehicle steps into the shoes of the owner & hence he ceased to be a third party and so claim by a borrower is not maintainable against the insurance company of the owner of the vehicle.
      1. Case laws – neemgamba Vs united India assurance company
      2. Ram kiladi vs united India insurance company Decided on 7 1 2020

5. Can an Insurance company Say NO to claimant because the car driver was at fault i.e. driving without license or any other fault of car driver?

Defenses available to the insurance company against owner of the company NOT against the claimant are enumerated under Sec 149 of Motor vehicle acts = these are operating when there is a valid insurance policy.

  1. These are aimed against the owner of the vehicle what are the consequences. When there is an accident, insurance company check following 3 conditions?
    1. Whether there was a policy of insurance at the date of accident?
    2. Whether the victim was 3rd party?
    3. Whether his coverage is taken away by operation of law?

If Above 3 conditions are met – Insurance company has to pay the compensation to the claimant.

Now, if there is a suppression of material facts or violation of conditions of the policy, then the insurance company can recover the compensation paid to the claimant from the owner of the vehicle.

  1. See any violation of the condition of the policy – license, permit
  2. Satisfy the award in favor of claimant and recover the compensation from the opwner of the vechicel not by separate by filling EP – Payment & Recovery. Which is mentioned in Section 149.
    1. Soransingh case 2004 SC driving license case.

6. Passengers Travelling in Goods Carrying Vehicle – What’s the liablity of Insurance Company?

  1. New india vs Asha Rani overruled sapal singh
    1. Section is 147 1.i
    2. A passenger traveling in a goods family is not liable for compensation as goods carrier is meant for carrying vehicle.
  • However, if the owner goods or his authorized representative travels along with the goods. Then company is liable.
  1. National vs baljeet kaur. 6 1 2004
  2. Madras High court – 2009 (1)ctc page 1 –united india insurance company vs nagamal . full bech. Para 31 – Goods carrier – anybody else apart from driver, cleaner, and else mentioned in policy + owner of goods or his authorized representative are covered. ANYBODY else who travels not covered.   No compensation and no direction for payment and recovery. Only liability against the owner of the  vehicle
    1. This is the job the advocate to show that the claimant traveled in goods vehicle in the capacity of driver, cleaner or one that is covered under the policy. Hence, advocate should write the petition in such a way they are withing section 147.
  • What is the nature of travel that determines whether a company is liable for Goods carrier?
    1. India Motor Tariff – rules framed by IRDA & have statutory authority.
    2. Persons like driver and other person connected with the operation of loading and unloading of the goods vehicle.

7. Driving License Related Issues –

  1. Driving Licence
    1. DL as against the period Vs DL against the type of vehicle.
    2. I have a licence to drive LMV can I drive a 2 wheeler? – NO.
  • LMV and I drive more than 7500 KG of Unladen Weight  – license not proper.
    1. Insurance company has to pay compensation and recover from the owner.
      1. Orintel Vs Zarunisa 2008 12 SCC 385 – driver had HMV but was driving 2 wheeler
        1. Lience is invalid – company pay – recover from owner.
      2. Owner need not file separate suit and can file EP in the same proceeding
        1. Oriental vs ganchapa – mode of recovery

8.   Traveling in a tractor

– Tractor it’s an LMV if its not attached to a trailer but becomes goods vehicle if attached to tailor.

  1. Not meant for travel by passenger.
    1. If a person sits in the trailer then it becomes a goods carrier. Claim and recovery can be contemplated.
      1. 2018 (2) shivraj vs rajendra.
      2. The company can say NO. but courts can contemplate.

Important Question –

Wife is the owner of the vehicle – Husband is driving vehicle and meets a fatal accident and is dead.  In such a case Wife cannot be claimant – the claimant should be children showing Wife as the 1st respondent and Grand Parents as Guardians of the children.