Package covers car occupant, insurer must pay relief: Karnataka HC

BENGALURU: A “comprehensive package policy” will cover the liability of the occupant in a car and the insurer is bound to pay compensation, the high court said, while asking New India Assurance Company to give in six weeks Rs 14.9 lakh relief with 6% interest awarded by a Motor Accident Claims Tribunal in Bengaluru.
Allowing the appeal filed by Messrs ARRK Tooling Sermo India Pvt Limited, a Pune-based company, Justice HP Sandesh pointed out that Insurance Regulatory and Development Authority has made the position clear on this aspect in two circulars issued on November 16, 2009 and December 3, 2009.
The judge noted that the IRDA circulars have been recorded by the Supreme Court in Balakrishnan’s case, to the effect that when the vehicle is insured by the company, the insurer is liable to pay compensation in case of “comprehensive package/policy”.
Ashok R Kyalkond was travelling in the company’s car and due to the driver’s rash and negligent driving, it met with an accident on June 18, 2001 near Lonikond village along Pune-Nagar road (Maharashtra) within the limits of Loni Kalabhor police station. Ashok was killed in the accident. His wife, minor son and parents filed a petition.
On July 21, 2010, the tribunal partly upheld their claim and the liability of payment of compensation was fastened upon the owner of the car. However, the insurance company was exonerated on the ground that the deceased being an employee of the car owner, is not covered under the policy.
The company owning the car challenged this verdict, contending the tribunal ought to have held that liability under the instant policy towards third-party liability is that of the insurance company alone.
The insurance firm claimed the deceased was proceeding in the offending car during the course of his employment under the owner and his risk was not covered under the insurance policy issued in respect of the vehicle.