The counsel for the insurance company argued that the claimant cannot be termed a third party for the purpose of awarding the compensation under the Motor Vehicles Act. It was submitted that it is the liability of the owner to indemnify the claimant in such matters.
The Court noted that since the premium paid for the motor insurance was towards personal accident claims, “the insurance company cannot be burdened with the liability of compensation of the injured claimant who borrowed the vehicle from the registered owner.“
Relying on the Supreme Court decision in Oriental Insurance Company Ltd. Vs. Rajni Devi and others, Justice Nandi held that in the present case the respondents only stepped into the shoes of the insured owner of the motorbike.
“The respondent/claimant is not covered under the MV Act as the injured/claimant stepped into the shoes of the owner of the vehicle in question,” the Court said.
The Court, therefore, allowed the appeal stating that the respondents were not entitled to the compensation awarded, and set aside the same.
Source: Barandbench
