Vehicle insurer can’t claim award — SC

The court further observed that the provision of law cannot be undermined in this way. "The court has to give effect to the real purpose of the provision of law relating to award of compensation in respect of accidents involving motor vehicles and cannot permit the insurer to give him a right to defend or appeal on grounds not permitted by law by a backdoor method.”

The ruling was handed down by a division bench comprising Justices D P Wadhwa and D P Mahapatra while allowing an appeal by the widow and minor children of one George, who died in a motor vehicle accident on May 28, 1989. The appelants were also awarded Rs 10,000 by way of cost.

The appeal was directed against a judgment of Kerala HC reducing the amount of compensation from Rs 3,78,000 awarded by the motor accident claims tribunal to Rs 2,27,320.

The claims tribunal gave its award on January 10, 1991 for Rs 3,78,000 with interest at 12 per cent per annum from September 1, 1989 with cost. The owner of the bus, N K Raju, and the insurer– Oriental Insurance Co Ltd — filed appeal against the order of the Claims Tribunal under Section 173 of the Motor Vehicles Act, 1988.

"In view of the decision of the Claims Tribunal it could not be said that N K Raju, owner of the vehicle, is an aggrieved person to file any appeal against the award. We have gone through the impugned judgment of the HC. There is no mention in whole body of the judgment how N K Raju felt aggrieved and what his argument raised against the Claims Tribunal award is”, the judges observed.

The judges said there was no challenge to the finding that the bus was being driven by the driver in a rash and negligent method.

Though the insurer has no right to challenge the award of compensation but it filed an appeal in the HC by adding N K Raju, the owner, as co-appelant, which led to the impugned judgment.