Mitali Palnitkar
Published On: February 01, 2022 at 13:40 IST
The Gauhati High Court held that a Claimant borrowing a vehicle of an insured person cannot be a third party for insurance relief under personal accident cover in Motor accident cases.
The Case was heard by Justice Malasri Nandi. The Appellants were represented by Advocate R Goswami and the Respondents were represented by Advocate N Debnath.
The Hon’ble Judge was hearing an Appeal against the 2010 Order of Motor Accident Claims Tribunal (MACT) that had awarded the Respondent a compensation of Rs 1,61,000 for being injured in an accident that involved an insured bike borrowed by them.
The Counsel argued on behalf of the Insurance Company that the Claimant could not be termed as a third party for awarding compensation under the Motor Vehicles Act. It was stated that it was the owner’s liability to indemnify the Claimant.
The Court noted,
“The Insurance Company cannot be burdened with the liability of compensation of the injured Claimant who borrowed the vehicle from the registered owner.”
The Court referred to the Supreme Court decision in the Case of Oriental Insurance Company Ltd v Rajni Devi and Ors. Justice Nandi observed,
“The Respondent/Claimant is not covered under the Motor Vehicles Act as the injured/claimant stepped into the shoes of the owner of the vehicle in question.”
The Court ruled,
“The benefits of the Insurance policy restricted to the personal insurance cover to the owner and the personal accident cover is a contract between the insured and the insurer and only designed to give the benefit to the insured and not the borrower.”
Therefore, the Court allowed the Appeal stating that the Respondents were not entitled to the compensation awarded.
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