Delhi High Court
United India Insurance Co. Ltd. vs Saroj Yadav & Ors. on 3 June, 2010
Author: Shiv Narayan Dhingra
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ F.A.O. No.393 of 1996
% 03.06.2010
UNITED INDIA INSURANCE CO. LTD. ...... Appellant
Through: Mr. Vishnu Mehra & Mr. R.L. Kadamb,
Advocates.
Versus
SAROJ YADAV & ORS. ......Respondents
Through: Mr. Anil Grover & Mr. Manish Kumar,
Advocates.
Reserved on: 20th May, 2010
Pronounced on: 3rd June, 2010
JUSTICE SHIV NARAYAN DHINGRA
1. Whether reporters of local papers may be allowed to see the judgment?
2. To be referred to the reporter or not?
3. Whether judgment should be reported in Digest?
JUDGMENT
1. The present appeal has been filed by the insurance company assailing award of the
Tribunal dated 8th October, 1996 wherein the Tribunal had held that the insurance
company being insurer of the offending vehicle was liable to pay the entire award amount
and the liability of the insurance company was not limited liability.
2. The insurance company had taken a plea before the Tribunal that the liability of
the insurance company was limited to Rs.50,000/-. The insurance company had relied
upon Exhibit RW 1/F which was produced before the Tribunal as a copy of the original
policy; however, the Tribunal observed that carbon copy of the policy does not contain
the terms and conditions. The proposal form was not produced. The policy was subject to
certain endorsements. Those endorsements were not proved before the court. Thus, the
insurance company failed to prove that its liability was limited to Rs.50,000/-.
3. In the appeal, insurance company has relied upon the copy of insurance policy
which shows that the premium charged by insurance company from the TSR owner was
Rs.48/- for 'Public Risk Liability'. The premium for 'Act Only Liability' as per tariff
was Rs.40/-. The tariff schedule is reproduced as under :-
CLASS B (3) : PASSENGER CARRYING VEHICLES:
MOTORISED RICKSHAWS
Subject to Endorsement No.26 except in the case of FLiability to
the Public Risks and 'Act Only' Liability Polices
Compulsory Excess will apply as under :-
[i] Vehicles not exceeding 75 c.c. ... Rs.100/-
[ii] Vehicles exceeding 75 c.c. ... Rs.250/-
Minimum values for premium computation in respect of vehicles
exceeding 75 c.c. shall be as follows irrespective of the lower
value declared for insurance :
Upto 150 c.c. ... Rs.1500/-
Upto 250 c.c. ... Rs.2500/-
Over 250 c.c. ... Rs.4000/-
Cubic Capacity Own Damage Liability 'Act
to the Only'
Public Liability
Risks
Not exceeding 50 c.c. Rs.28/- Rs.36/- Rs.30/-
Not exceeding 75 c.c. Rs.50/- Rs.36/- Rs.30/-
Not exceeding 350 c.c. Rs.80 + 0.55% Rs.48/- Rs.40/-
on I.E.V.
Not exceeding 750 c.c. Rs.105 + 0.65% Rs.72/- Rs.60/-
on I.E.V.
Exceeding 750 c.c. Rs.163 + 0.55% Rs.72/- Rs.60/-
on I.E.V.
4. This court in F.A.O. No. 257 of 1991 titled Neeta Trehan & Ors. Vs. Gopal
Krishan & Ors., decided on 17th May, 2010 has held that the liability of insurance
company has to commensurate with the premium charged and liability of insurance
company can be held to be limited only if premium charged by insurance company was as
per tariff rates of 'Act Only Policy'. If the premium charged was over and above 'Act
Only Policy', the liability cannot be held to be limited. The facts of this case are squarely
covered by Neeta Trehan's case (supra).
5. I find no force in this appeal. The appeal is hereby dismissed.
SHIV NARAYAN DHINGRA J.
JUNE 03, 2010
'AA'
