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Claimant cannot maintain a claim on basis of his own fault or negligence

In NATIONALINSURANCECO. LTD. vs ASHALATA BHOWMIK, appeal was filed by the insurer before the Supreme Court against the judgment of the Tripura High Court directing the appellant-insurer to pay the compensation of Rs.10,57,800/- to the respondents awarded by the MACT with interest at the rate of 8% per annum from the date of filing of the claim petition till the date of payment.

The contention of the insurer was that the deceased himself was the owner-cum- driver of the offending vehicle. He was not a third party within the meaning of the Motor Vehicles Act, 1988 (for short 'the Act'). The accident had occurred due to the negligence of the deceased. Therefore, the appellant, being insurer of the vehicle, was not liable to pay the compensation. The High Court however while accepting that the deceased was not a third party and that the accident had occurred due to the rash and negligent driving of the offending vehicle, held that as it has been established by the claimant- respondents that the premium was paid for the personal accident the insurance company is liable to pay the said compensation, even though it is limited to Rs.2,00,000/- to the claimant- respondents.

The Supreme Court accepted the objection of the insurer holding that a Claimant cannot maintain a claim on the basis of his own fault or negligence and argue that even when he himself may have caused the accident on account of his own rash and negligent driving, he can nevertheless make the insurance company to pay for the same. Therefore, the respondents being the LRs of the deceased could not have maintained the claim petition filed under Section 166 of the Motor Vehicles Act.

The Supreme Court also referred to the decision of the Supreme Court in Oriental Insurance Co. Ltd. v. Jhuma Saha (Smt) and Ors. wherein while considering a similar case where the owner himself was driving the vehicle which due to his negligence dashed with a tree on the roadside as a result of which he died, the Court held that the claim petition filed by his LRs was not maintainable as liability of the insurer Company is to the extent of indemnification of the insured against the respondent or an injured person, a third person or in respect of damages of property. Thus, if the insured cannot be fastened with any liability under the provisions of the Motor Vehicles Act, the question of the insurer being liable to indemnify the insured, therefore, does not arise.


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