Hdfc Ergo General Insurance Company Ltd vs Maniram (2024:Rj-Jd:8276)
2024 Latest Caselaw 1583 Raj

Citation : 2024 Latest Caselaw 1583 Raj
Judgement Date : 16 February, 2024

Rajasthan High Court - Jodhpur

Hdfc Ergo General Insurance Company Ltd vs Maniram (2024:Rj-Jd:8276) on 16 February, 2024

Author: Rekha Borana

Bench: Rekha Borana

[2024:RJ-JD:8276]

      HIGH COURT OF JUDICATURE FOR RAJASTHAN AT
                       JODHPUR
                    S.B. Civil Misc. Appeal No. 2103/2019

Hdfc Ergo General Insurance Company Ltd., Jodhpur Office At
N.k. Tower, Chopasni Road, Jodhpur Through Its Authorized
Representative.
                                                                         ----Appellant
                                       Versus
1.        Maniram S/o Jamanlal Swami, R/o Village Bandanu, Tehsil
          Nokha, District Bikaner.
2.        Premaram S/o Kesharam Jat, R/o Village Krishnpura,
          Tehsil Ladanu, District Nagaur. (Registered Owenr Of
          Tractor)
3.        Nanuram S/o Ramdevaram Jat, R/o Village Genana, Tehsil
          Ladanu, District Nagaur. (Actual Owner Of The Tractor)
4.        Purakhnath S/o Padamnath Siddha, R/o Village Punarasar,
          Tehsil Sri Dungarpur, District Bikaner(Tractor Driver)
5.        The Oriental Insurance Co. Ltd., Through Its Divisional
          Manager, Panhshati Circle, Sadulganj, Bikaner. (Insurer Of
          The Bolero)
                                                                    ----Respondents


For Appellant(s)             :     Mr. Jagdish Chandra Vyas
For Respondent(s)            :     Mr. Pradeep Choudhary
                                   Mr. Rajesh Punia



              HON'BLE MS. JUSTICE REKHA BORANA

Order

16/02/2024

1. The present appeal has been preferred against the

judgment/award dated 25.03.2019 passed by Motor Accident

Claims Tribunal, Bikaner in MAC Case No.150/2014 whereby the

learned Tribunal proceeded on to award an amount of

Rs.1,25,709/- in favour of the injured claimant.

[2024:RJ-JD:8276] (2 of 4) [CMA-2103/2019]

2. Learned counsel for the appellant submits that the amount of

Rs.82,709/- awarded qua the damage to the vehicle, by the

learned Tribunal, is totally erroneous in terms of the settled

proposition of law. He submits that Section 147 (2) of the Motor

Vehicles Act, 1988 specifically provides that the liability of the

Insurance Company in respect of damage to any property of a

third party would be limited to an extent of Rs.6,000/-. It is

nowhere proved on record that any extra premium was paid by

the claimant qua any extra liability other than the statutory

liability and hence, nothing more than an amount of Rs.6,000/-

could have been awarded qua the said head.

In support of his submission, counsel relied upon the

judgment passed by the Division Bench of this Court in New

India Assurance Company Limited vs. Rajasthan State Road

Transport Corporation & Anr.; 2003 ACTC (Raj.) 125.

3. Learned counsel for the respondents is not in a position to

refute the ratio as laid down in the abovementioned judgment as

well as the specific provision of law.

4. Heard learned counsel for the parties and perused the

material available on record.

5. Section 147(2) of the Act of 1988 (prior to Amendment Act

of 2019) read as under:

"(2) Subject to the proviso to sub-section (1), a policy of insurance referred to in sub-section (1), shall cover any liability incurred in respect of any accident, up to the following limits, namely:--

(a) save as provided in clause (b), the amount of liability incurred;

(b) in respect of damage to any property of a third party, a limit of rupees six thousand:

Provided that any policy of insurance issued with any limited liability and in force, immediately before the commencement of this Act, shall

[2024:RJ-JD:8276] (3 of 4) [CMA-2103/2019]

continue to be effective for a period of four months after such commencement or till the date of expiry of such policy whichever is earlier."

Meaning thereby, the statute specifically provided for an

outer limit of the liability of the Insurance Company qua damage

to the vehicle of a third party. In the case of New India

Assurance Company Limited (supra), the Division Bench held

as under:

"10. Accordingly, in our opinion, there is no room for further contention before this court in view of the decision in C.M. Jaya's case (supra) that the insurance company may be made liable to make payment of entire amount of compensation arising out of damages to the property in excess of statutory liability where no higher amount is accepted by accepting a higher premium and thereafter the insurance company may recover the same from the insured."

6. In view of the above clear provision of law as well as the

ratio laid down in the case of New India Assurance Company

Limited (supra), the finding of the learned Tribunal holding the

Insurance Company liable to pay the amount of Rs.82,709/- qua

the damage to the vehicle in question deserves modification. It is

hereby held that the Insurance Company would be liable to pay an

amount of Rs.6,000/- only qua the award of Rs.82,709/-.

However, the claimants shall be at liberty to recover the remaining

amount of award qua the said head from the owner/driver of the

vehicle in question.

7. This Court does not find any ground to interfere with the

amount as awarded by the learned Tribunal qua the other heads.