Skip to main content

Insurance: Intentional self-injury explained

In Mala Sahni Seth vs New India Assurance Co. Ltd., the insured died while trying to ride a high end bike. It was found on enquiring that the company owning the bike had specifically asked riders to get oriented with the bike before riding which the insured had not done. The claim of the legal heirs of the insured was however repudiated by the insurer as per Exception No. 5(a) of the policy which says that the company shall not be liable under this policy for Payment of compensation in respect of Death, Injury or Disablement of the Insured from Intentional self-injury.

The matter reached the NCDRC which observed that in view of the decision of the Hon'ble Supreme Court in Galada Power and Telecommunication Limited Vs. United India Insurance Company Ltd. & Anr. (2016) 14 SCC 161,  the insurer cannot be allowed to contest the consumer complaint beyond the ground on which the claim has been repudiated. A perusal of the repudiation letter would show that the claim was repudiated solely on the ground that M/s Eagle Rider who had given the motor cycle to its pillion rider Mr. Neeraj Sethi on hire had advised  the person driving the motor-cycle to undergo an orientation and the deceased had not undergone such orientation with the vehicle before he drove the vehicle and, therefore, this was a case of intentional self-injury.  The use of the term 'intentional self-injury' in the insurance policy would mean that the person who suffered the injury must have wanted such an injury to be caused to him.  Ordinarily, this would happen in a case where a person either wants to committee suicide or he wants to cause injury to himself. The intention of a person is a state of mind which cannot be proved by way of direct evidence but has to be inferred from the attending facts and circumstances. There is no evidence to prove that Late Sh. Sunil Seth wanted to commit suicide or he wanted to cause injury to himself.  Therefore, there was no basis for the insurer to even claim that this is a case of intentional self-injury. In my opinion an intentional self-injury cannot be inferred even if driving this particular motor-cycle required some special orientation or even a special training which late Mr. Sunil Seth did not possess.  M/s Eagle Rider owned the vehicle and, therefore, must be quite keen to insure that the vehicle is not damaged while being driven by the hirer. That would the purpose of requiring the hirer to take an orientation of the vehicle so that he is able to familiarize himself with the machine being taken on hire and did not cause an accident resulting in damage to the vehicle. A person driving a high-end motor cycle without taking the orientation which the owner of the vehicle wants to be taken by the driver of the vehicle may be said to be negligent if he drives the vehicle without such an orientation, but it can never be said that his intention behind driving such a motor cycle without orientation, desired by its owner, was to cause injury to himself.  A negligent act such as driving a motor cycle without taking the orientation desired by its owner can never be equated with an intentional self-injury if driving the vehicle result in an accident.  The intention being a state of mind required resolve on the part of the insured to either kill himself or to cause injury to himself. If a person drives a vehicle without having a driving licence it would be difficult to say that his intention is to cause self-injury. The intention of such a person would be to enjoy the driving though he may not be possessing the skill required for the purpose. If a person driving a vehicle meets with an accident it would be difficult to say merely from his driving without a licence that his intention was to cause injury to himself. The position of a person who otherwise possesses a valid driving licence but does not take the orientation advised by the owner giving the vehicle on hire would be much better than the position of a person driving a vehicle without requisite licence. Therefore, I have no hesitation in holding that the present case was not covered under exception No. 5(a) of the policy.

Comments

Post a Comment

Most viewed this month

Michigan House Approves 'Right-to-Work' Bill

Amid raucous protests, the Republican-led Michigan House approved a contentious right-to-work bill on  Dec 11 limiting unions' strength in the state where the (Union for American Auto Workers)  UAW was born. The chamber passed a measure dealing with public-sector workers 58-51 as protesters shouted "shame on you" from the gallery and huge crowds of union backers massed in the state Capitol halls and on the grounds. Backers said a right-to-work law would bring more jobs to Michigan and give workers freedom. Critics said it would drive down wages and benefits. The right-to-work movement has been growing in the country since Wisconsin fought a similar battle with unions over two years ago. Michigan would become the 24th state to enact right-to-work provisions, and passage of the legislation would deal a stunning blow to the power of organized labor in the United States. Wisconsin Republicans in 2011 passed laws severely restricting the power of public s...
Post a Comment
Read more

Power to re-assess by AO and disclosure of material facts

In AVTEC Limited v. DCIT, the division of the Delhi High Court held that AO is bound to look at the litigation history of the assessee and cannot expect the assessee to inform him.  In the instant case, the Petitioner, engaged in the business of manufacturing and selling of automobiles, power trains and power shift transmissions along with their components, approached the High Court challenging the re-assessment order passed against them. For the year 2006-07, the Petitioner entered into a Business Transfer Agreement with Hindustan Motors Ltd, as per which, the Petitioner took over the business from HML.  While filing income tax return for the said year, the petitioner claimed the expenses incurred in respect of professional and legal charges for the purpose of taking over of the business from HML as capital expenses and claimed depreciation. Article referred: http://www.taxscan.in/assessing-officer-bound-look-litigation-history-assessee-delhi-hc-read-order/8087/
Post a Comment
Read more

The recovery of vehicles by the financier not an offence - SC

Special Leave Petition (Crl.) No. 8907  of 2009 Anup Sarmah (Petitioner) Vs Bhola Nath Sharma & Ors.(Respondents) The petitioner submitted that  respondents-financer had forcibly taken away the vehicle financed by them and  illegally deprived the petitioner from its lawful possession  and  thus,  committed  a crime. The complaint filed by the petitioner had been  entertained  by  the Judicial Magistrate (Ist Class), Gauhati (Assam) in Complaint Case  No.  608 of 2009, even directing the interim custody of the vehicle (Maruti  Zen)  be given to the petitioner vide order dated  17.3.2009.  The respondent on approaching the Guwahati High  Court against this order, the hon'ble court squashed the criminal  proceedings  pending   before  the  learned Magistrate. After hearing both sides, the Hon'ble Supreme Court decided on 30th...
7 comments
Read more