The truck was fully loaded with small metal stones (Kapchi) used in road making.
One masonry worker and seven labourers were sitting on overloaded truck and were on their way from Madhya Pradesh to Gujarat.
Truck met with an accident and turned turtle.
One masoner died.
Seven labourers were injured.
A lawyer filed claim cases for the legal heirs of deceased masonor and other labourers who were travelling on truck.
The Insurance Company denied liability on ground that it was a goods vehicle, there was no permission to carry travellers.
The lawyer arged that all these person were travelling with their goods and belonging and therefore, insurance company was liable.
First court rejected this argument. It awarded compensation but said it can be recovered only from Driver and Owner of the truck.
The claimants and his lawyer were disappointed. There was no possibility of recovering compensation award from driver or from owner of truck.
They went to High Court. High Court denied relief.
The matter came to Supreme Court.
The Supreme Court noticed plight of poor man who had died. It increased amount and directed insurance company to pay.
Law point Yet to be Argued and Settled
Even if Owner and Driver breach terms of policy, such breach cannot dissolve statutory liability of Insurer to third parties in the event of accident. If there is breach of condition of policy, insurance company has to pay to claimant and then recover it from owner and driver.
Haresh Raichura
1/11/13
-(C) Copyright
