If charge sheet is not corroborating with the facts stated in the Motor Vehicle Accident Claim Petition, then the Tribunal should not considered the Claim Petition at all

The entire facts and circumstances raises a doubt in the mind of the Court. As far as the accident claims are concerned, the facts must be unambiguous. Even in case, there is a loss of memory or the claimant due to the injury, unable to provide the correct vehicle number, at least the Police Investigation should reveal the accident occurring time and the place specified as in the Claim Petition. If the charge sheet of the Police is not corroborating with the facts stated in the Claim Petition, then the Tribunal ought not to have considered the Claim Petition at all. In most of the cases, the facts stated in the FIR has been taken for consideration to establish the accident. But, in the present case, even after the investigation and filing of the charge sheet, Police officials deposed that the facts stated in the Claim Petition is mistaken facts. This being the Primafacie case established before the Tribunal, the Tribunal has not appreciated the contradiction in the Claim Petition as well as in the FIR and the Charge sheet filed by the Police. The deposition of Mr.Raja cannot be taken as a valid evidence, in view of the fact that he is an interested witness. However, the FIR and the Charge sheet cannot be neglected and it is to be given due weightage. If the basic facts regarding the accidents are not corroborating with the FIR as well as the charge sheet filed by the Police, then there is every reason to disbelieve the case of the respondent/claimant. This Court is of the considered opinion that many number of false claims are filed, processed and the Tribunals are also awarding compensation in a routine manner. Though the issues were dealt on several occasions by the Hon'ble High Court as well as by the Hon’ble Supreme Court, still such false claims are being noticed. Full Proof System in the matter of accident claims are necessary in order to avoid the bogus and fraudulent claims. This apart, unethical practices in settlement of claims are to be eradicated in order to protect the interest of the genuine accident victims. Undoubtedly, the accident victims are to be provided medical treatment immediately and 'just compensation' is to be granted without any lapse of time. The very purpose and object of the statute is to ensure speedy remedy to the accident victims. However, such things are not happening on account of various corrupt practices in the process of settling the compensation. Courts are also struggling to minimize such irregularities and illegalities. In the process of rectification, Court can make suggestions and issue directions to improve the system, so as to minimize the level of corruption and any other illegal activities in Motor Accident cases. This being the factum and the case of false claims are brought to the notice of the Courts, the Hon'ble High Court and the Hon’ble Supreme Court, on several occasions, issued directions, so as to ensure the genuine claimants receive compensation at the earlier point of time in accordance with law.[Para No.10]

    Both the above provisions of the Motor Vehicles Act, 1988 unambiguously reveals that the Police officer, on receipt of information regarding any accident involving death or bodily injured to any person, has to register the F.I.R and conduct investigation and submit a report and such a report is to be communicated to the Claims Tribunal as well as the insurer and the copy should be made available to the owner of the vehicle also. The above statutory provisions is crystal clear that the duty of the Police officer to prepare the Accident Information Report and the detailed accident report and communicate the report to the Tribunal and Insurance company and thereafter, the Claims Tribunal under Section 166(4) of the Act shall treat the report of Accidents forwarded to the Tribunal as an application under Sub-Section (6) of Section 158 for compensation under the Motor Vehicles Act.[Para No.15]

Insurance company is not liable to pay compensation to the claimants if cheque of premium issued by vehicle-owner is dishonored before the date of accident

On perusal of the entire record, it is not in dispute that respondent No.6, owner of the offending vehicle, has issued the cheque on 28.02.2014 for Rs.42,335/- towards payment of premium in respect of the offending vehicle. Pursuant to the same, the Insurer has issued a cover note on the very same day. The Insurer deposited the said cheque with its banker on 10.03.2014 for encashment, but the same was dishonoured on 11.03.2014. The same was informed to the Insurer vide cheque return memo dated 11.03.2014. Thereafter, the Insurer has addressed Ex.B5 - letter dated 13.03.2014 to the owner by sending the same through registered post with acknowledgment due to the address furnished by the owner while issuing Ex.B1 - cover note. A copy of Ex.B5 was marked to the RTO informing about the dishonour of cheque as well as cancellation of cover note. The said letter was received by the owner vide Ex.B6, while the RTO under Ex.B7. In Ex.B6 - postal acknowledgment card, there is a signature in proof of receipt of Ex.B5 - letter. It further discloses that the article was booked vide RLAD No.RM838996406IN. The learned counsel for the claimants would contend that signature on Ex.B6 does not belong to respondent No.6 and, therefore, he has not received Ex.B5 - letter. But, the said contention cannot be accepted in view of Exs.B1, B5 and B6. Admittedly, Ex.B5 was sent to the address furnished by the owner under Ex.B1.[Para No.26]

    From the above discussion, it is clear that the cheque issued under Ex.B2 was dishonoured and consequently Ex.B1, cover-note was cancelled by the Insurer. The Insurer also intimated about the dishonour of cheque as well as cancellation of policy to the owner as well as RTO by addressing a letter under Ex.B5 and the said letter was received by the owner under Ex.B6 while Ex.B7 discloses receipt of Ex.B5 letter by the RTO. Thus, there is no valid policy exists as on the date of accident i.e., 04.05.2014. Section 64-VB of the Insurance Act also says that no risk to be assumed unless premium is received in advance. In the present case, the Insurer has not received the premium and, therefore, the Insurer shall not assume any risk. As such, the Insurer is not liable to pay compensation to the claimants - legal heirs of the deceased.[Para No.31]

    As already discussed above, the accident is not in dispute. The claim was under Section 163A of the M.V. Act. The policy was cancelled as on the date of accident i.e., 04.05.2014. The policy was not in force as on the date of accident. Therefore, the appellant - Insurer is not liable to pay compensation to the claimants. It is respondent No.6, owner of the vehicle who is liable to pay compensation to the claimants. Thus, the finding of the Tribunal that the appellant - Insurer has to pay the compensation at the first place and recover the same from the owner is unsustainable.[Para No.37]

Insurance company not liable when vehicle is driven by unauthorized driver

Motor Vehicle Accident  Petition - Sec. 165, 168, 174, 149(2) of The Motor Vehicle Act - Accident by unauthorized driver - breach of policy - liability of Insurance Company

   Mere producing of valid insurance certificate, in respect of offending truck is not enough for the owner to make insurance company liable to discharge liability arising from rash and negligent driving by the driver of the vehicle. The insurance company can be fastened with the liability on the basis of the valid insurance policy only after basic facts are pleaded and established that the vehicle was not only duly insured but also that it was driven by anauthorized person having a valid driving license. The insurance company would become liable only after such foundational facts are pleaded and proved by the other side.