Insurance Company Not Liable If Claimant Was Travelling In Trailer Which Was Not Insured Even If Tractor Was Insured: Supreme Court

The Supreme Court observed that the insurance company is not liable if the claimant was travelling in the trailer attached to the tractor, which was not insured though tractor was insured.

When a tractor and trailer are involved, both the tractor as well as the trailer are required to be insured, the bench of Justices observed.

In this case, the Bombay High Court enhanced the compensation to Rs.9,99,280/- with interest @ 9% per annum. But taking note that the claimant was travelling in the trailer attached to the tractor, which was not insured though tractor was insured, the High Court exonerated the Insurance Company.

In appeal, the Apex Court bench agreed with this view of the High Court and observed that, in a normal circumstance, when the claimant was travelling in the trailer which was not insured, the liability on the Insurance Company cannot be fastened.

The bench however noted that the claimant is a lady who was working as a labourer and was travelling in the tractor attached to the trailer, was about 20 years old as on the date of the accident. 

"Due to the injuries suffered in the accident she had also undergone amputation of her left lower limb above the knee joint. Therefore, apart from the disability being 100%, there is prejudice to the marriage prospects and to lead a normal life. In such circumstance, it would not be possible for the claimant to recover the amount from the owner.", the court noted. In this regard, the bench relied on its judgment in Oriental Insurance Company Ltd. Vs. Brij Mohan (2007) 7 SCC 56.

Thus, the bench directed the Insurance Company to pay the amount awarded by the High Court as compensation with the accrued interest and recover the same from the owner of the vehicle.

Dhondubai vs Hanmantappa Bandappa Gandigude | 2023 LiveLaw (SC) 725 | CA 5459-5460 OF 2023

Motor Accident Compensation Claims - When the claimant was travelling in the trailer which was not insured, the liability on the Insurance Company cannot be fastened - When a tractor and trailer are involved, both the tractor as well as the trailer are required to be insured - However, invoking Article 142 powers, Insurance Company directed to pay the amount awarded by the High Court as compensation with the accrued interest and recover the same from the owner of the vehicle. 

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