Priya Gour
Published on: 2nd August, 2022 at 19:15 IST
The Karnataka High Court while turning down a lower court’s order held that even in absence of fitness certificate, the insurer will be liable to lay compensation, of there is running insurance policy.
The lower court had earlier held liable the owner of a bus for paying compensation to the victims of accident since it did not have a renewed fitness certificate and permit for the vehicle.
Case:
In an accident involving a school bus and two persons on a motorcycle, one of the rider Syed Wali died on the spot. A compensation claim was filed by Wali’s wife Banu Begum and his dependent children. New India Assurance Co. declined to pay the claim, citing absence of a fitness certificate and permit of the school bus.
In 2005, the insurance company’s submission was upheld by the Second Class Additional District’s and Session’s Judge. The Court ordered the school bus owner, Dr. Narasimulu Nandini Education Memorial Trust to pay a compensation of Rs.6,18,000 to Wali’s family.
The Trust went for appeal before High Court against order of lower court. The case was presented before the Single Bench led by Justice Sreenivas Harish Kumar, & overturned the lower court’s order.
Decision of Court:
The Bench noted that, “In this case though the insurance policy was in force on the date of the accident, the permit and validity of the fitness certificate had expired. The insurance company would not have issue the policy unless the fitness permit was in force and it appears that the fitness certificate expired after the issuance of the policy. “
The Court held that the FC permit was in place when the accident took place. Hence, the insurance company can not shy away with its responsibility of paying claim.
Resultantly, the Insurance company was directed by the Court to compensate the bus owner for the amount paid by them to the victims of the accident.