Karnataka High Court says insurer not liable to pay compensation to agricultural labourer for tractor injury, asks vehicle owner to pay up

L and T Insurance Company, which is now part of HDFC Ergo GIC Ltd, had approached the high court challenging an order dated October 14, 2019, passed by the Motor Accident Claims Tribunal (MACT), Raichur. The tribunal had held that the insurance company and the owner of the tractor would be jointly liable to pay compensation to the injured, identified as Hanumappa.

Advocate Preeti Patil Melkundi, appearing for the insurance company, placed reliance on the Full Bench order of the high court in the case of ‘Gadhilingappa and another vs K Guleppa and others, 2021,’ and argued that the injured was travelling on the mudguard of the tractor and, therefore, cannot be covered by the insurance policy, as this was a fundamental breach of the policy condition.

Further, it was contended that the insurance company could also not be told to pay and recover the compensation from the owners of the tractor.

After hearing the arguments, the court said, “Insofar as the liability cast on the Insurance Company is concerned is set aside. The liability is shifted to the owner of the tractor-trailer, who would have to make payment of compensation as determined by the Tribunal.”