As per the case, on November 22, 1995 at about 8.45 am, a couple, who were teachers, were going in a motorcycle when a car belonging to the Metronex Cars & Bikes Ltd company came in a rash and negligent manner and hit them near Iruvaram Check Post, Chittoor.
As per the case, on November 22, 1995 at about 8.45 am, a couple, who were teachers, were going in a motorcycle when a car belonging to the Metronex Cars & Bikes Ltd company came in a rash and negligent manner and hit them near Iruvaram Check Post, Chittoor. In the impact, the couple sustained grievous injuries. Stating that the accident had occurred only due to the rash and negligent driving of the car driver, they filed separate claim petitions seeking compensation of Rs 4.50 lakh and Rs 70,000.
Based on this, the Motor vehicle accidents tribunal at Chennai, awarded a total compensation of Rs 2,04 Lakhs and Rs 57,000 respectively and directed New India Assurance Co Ltd, to pay the amount with interest at 9% per annum from the date of claim petitions. Challenging the same, the Insurance company moved the appeal, present appeals came to be filed by the insurance company.
The insurance company submitted that the insurance policy was issued only at 11.00 am on November 22, 1995 and there was no policy coverage at 8.45 am, when the accident had occurred that day. But the car owner who had availed the insurance claimed that the policy was granted on November 21, 1995 and in order to defraud and deprive their legitimate claim, the insurance policy was issued only at 11 am that day.
However, Justice R Mahadevan on applying the dictum laid down by the Apex Court in this regard, said, “This Court is of the opinion that there is no insurance coverage for the vehicle involved at the time of accident and hence, the insurance company cannot be saddled with the liability to make good the loss suffered by the insured.”
“Accordingly, the finding of the Tribunal fastening liability on the insurance company is set aside. However, the claimants are entitled to receive the awarded compensation amount from the owner of the vehicle in accordance with law,” the judge held.