The Jammu and Kashmir and Ladakh High Court has issued a ruling stating that an insurer cannot avoid responsibility for paying compensation to claimants simply because the legal heirs of the deceased owner were not included in the claim petitions. The decision was made by Justice Sanjay Dhar's bench while hearing several appeals brought by an insurance company challenging the award given by the Motor Accident Claims Tribunal in Jammu.
The court emphasized that the insurer's liability extends not only to the named insured but also to the legal heirs of the deceased owner. The ruling highlights the significance of including all potential claimants in the claim petition to prevent future disputes. It also emphasizes that the insurer cannot use technicalities to escape liability when the claimant has a valid claim.
The recent decision by the Jammu and Kashmir and Ladakh High Court highlights the importance of ensuring that all parties are included in a claim petition and upholding an insurer's liability to pay compensation to claimants.
The appellant in the case disputed the award on the basis that the claimants had failed to include the legal heirs of the deceased owner of the vehicle responsible for the accident in their claim petitions, making the petitions legally unsustainable.
The appellant argued that the driver and owner of the vehicle had both passed away in the accident, and despite removing the driver's name from the claim, the claimants had not taken steps to include the legal heirs of the owner, making the claim petitions and the subsequent award invalid under the law.
The appellants also argued that as no First Information Report (FIR) was filed regarding the accident, it could not be established that the accident had even occurred.
However, Justice Dhar dismissed this argument and instead focused on the primary ground of the appeal. He pointed out that Section 155 of the Motor Vehicles Act clearly states that if the insured person dies after the accident that gave rise to the claim, the claim will still be valid and can be made against the estate of the insured or the insurer. This means that the legal heirs of the deceased owner can still make a claim against the insurer, even if an FIR was not filed regarding the accident.
To determine the maintainability of the claim petitions without including the legal heirs of the deceased owner as parties, the J&K High Court referred to a previous ruling in Bajaj Allianz General Insurance Co. Ltd. vs. Naresh Kumar and another 2021. The court noted that Section 155 of the Motor Vehicles Act clearly states that the death of the insured person after the accident that gave rise to the claim will not bar the proceedings and the claim can still be made against the insurer or the estate of the insured.
The appellant argued that since the insured person had died in the same accident that gave rise to the claim, Section 155 of the Act would not apply. However, the court rejected this argument, stating that the section specifies that the claim can still be made if the insured person dies after the accident, not before it. As the certificate of insurance was in force at the time of the accident, the claim petitions were valid under Section 155.
The appellant also argued that as no FIR was registered regarding the accident, it could not be established that the accident had even occurred. However, the court dismissed this argument, pointing out that the police had conducted inquest proceedings under Section 174 of the CrPC, which indicated that the occurrence had been established.
As a result, the bench found the appeal to be without merit and dismissed it.
Case Title: IFFCO TOKIO General Insurance Co. Ltd Vs Om Prakash.
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TAGS: legal insurance liability claim petitions Motor Accident Claims Tribunal Jammu Jammu and Kashmir High Court Section 155 Motor Vehicles Act legal heirs Bajaj Allianz General Insurance Co. Ltd. v. Naresh Kumar coordinate bench insured certificate of insurance cause of action inquest proceedings FIR.
