Oriental Insurance Co. Ltd vs Rajni Devi & Ors on 22 April, 2008
In the case of Oriental Insurance Company Ltd. v. Rajni
Devi and Others, (2008) 5 SCC 736, wherein one of us,
namely, Hon'ble Justice S.B. Sinha is a party, it has been
categorically held that in a case where third party is involved, the
liability of the insurance company would be unlimited. It was
also held in the said decision that where, however, compensation
is claimed for the death of the owner or another passenger of the
vehicle, the contract of insurance being governed by the contract
qua contract, the claim of the claimant against the insurance
company would depend upon the terms thereof. It was held in
the said decision that Section 163-A of the MVA cannot be said to
have any application in respect of an accident wherein the owner
of the motor vehicle himself is involved. The decision further
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held that the question is no longer res integra. The liability
under section 163-A of the MVA is on the owner of the vehicle.
So a person cannot be both, a claimant as also a recipient, with
respect to claim. Therefore, the heirs of the deceased could not
have maintained a claim in terms of Section 163-A of the MVA.
In our considered opinion, the ratio of the aforesaid decision is
clearly applicable to the facts of the present case. In the present
case, the deceased was not the owner of the motorbike in
question. He borrowed the said motorbike from its real owner.
The deceased cannot be held to be employee of the owner of the
motorbike although he was authorised to drive the said vehicle
by its owner, and therefore, he would step into the shoes of the
owner of the motorbike.