United India Insurance Co.Ltd vs K.M.Poonam & Ors on 18 February, 2011
5. If that be the position, this issue would not arise for
consideration. It is exactly for this reason, the Tribunal has not framed any
issue with regard to overloading. Otherwise also, issue with regard to the
overloading of the offending vehicle and the liability of the insurer has been
fairly settled by the Supreme Court in the case of United India Insurance
Company Limited v. K.M.Poonam, 2011 ACJ 917 SC. It is, thus, trite law
that even if, passenger vehicle is overloaded, the Insurance Company is not
totally absolved of its liability to indemnify the owner but its liability would
be restricted to satisfy the highest awards qua the passengers within the
permissible seating capacity of the vehicle and for rest of the passengers also
the Insurance Company would pay the compensation in the first instance and
shall have the recovery rights against the owner.