Top courtroom provides verdict in case pertaining to deadly accident involving bus hired by UPSTC
The legal responsibility of a insurance coverage firm to pay third-party damages doesn’t freeze merely as a result of the vehicle has been hired out by the registered proprietor, the Supreme Court has held in a current order.
The insurance coverage firm would nonetheless must pay up in case of an accident and can’t lob the accountability on to the hirer.
Both the insurance coverage coverage and the vehicle are transferred into the possession of the hirer on the premise of an settlement with the registered proprietor. The hirer turns into the ‘owner’ for a specified interval.
“It will be deemed that that vehicle was transferred along with the insurance policy, even if it were insured at the instance of the original owner. Thus, the insurance company would not be able to escape its liability to pay the amount of compensation,” a Bench of Justices S. Abdul Nazeer and Krishna Murari held on July 14.
The case pertains to a deadly accident involving a bus hired by the Uttar Pradesh State Transport Corporation in 1998.
The household of the accident sufferer had approached the Motor Accident Claims Tribunal claiming compensation.
The tribunal ordered the insurance coverage firm to pay ₹ 1.82 lakh to the dependants of the lifeless man.
However, the insurance coverage firm appealed to the Allahabad High Court on the grounds that the company had hired the vehicle. The bus was beneath the “control” of the Corporation when the accident came about. The firm mentioned it had no settlement with the company and its contract of insurance coverage was solely restricted to the registered proprietor.
The High Court, in 2009, agreed and exempted the insurance coverage firm from the legal responsibility and ordered the company to pay the household.
The company subsequently approached the Supreme Court, which put aside the HC resolution and confirmed the tribunal verdict.