The tribunal held that the occurrence of the incident is not denied by the insurance firm as well as the accused driver
In a recent order, the Motor Accident Claim Tribunal held that even if driving with an invalid license amounted to breach of insurance terms by the driver, in case of an accident, insurer must first honour the insurance claim and pay the victim's family and then recover the amount from the insured.
The tribunal thus directed M/s Buthello and Sons, a prominent bus and truck operator in the state, and insurance firm New India Assurance to pay compensation of Rs 7.36 lakh to the family of a 55-year-old pedestrian killed in an accident.
A driver employed M/s Buthello and Sons was recently held guilty by the Tribunal for causing the death of the pedestrian. The tribunal has asked the firm and the insurance firm, which had provided cover to the vehicle, to cough up an amount of Rs 7,36,000 with an interest rate of eight per cent on the amount.
The tribunal held that the occurrence of the incident is not denied by the insurance firm as well as the accused driver.
Ramesh Shetty, the deceased, who was earning his living in Mumbai, had his family in his home town in Karnataka. On December 29,2012, when he had left from his office and was walking towards BKC, a motor crusher hit him. The dash was so severe that he suffered a head and hand injury. He was initially taken to Bhabha hospital, but was later shifted to Sion hospital. However as the injury was severe, thus he succumbed to injuries.
After the incident, in 2013, when the matter came up for hearing before the MACT, the tribunal had asked the firm and the insurance provider, New India Assurance company to advance their say, but there was no response from the transport firm.
Meanwhile the insurance firm held that on investigation it had found that there was a breach in policy which was signed by the firm. The insurance firm claimed that the driver of the vehicle did not hold a proper license to drive the heavy vehicle and thus it cannot honor the claim.
The tribunal after going through the evidence on the death of the victim held, "The medical papers reads that it was shock and he died due to poly trauma. His death was an outcome of accident injuries and thereby directly connected with the accident because of the rash and negligent driving."
Further while directing the insurance firm to pay the compensation, the tribunal maintained that even if there is a breach of condition from the insurer's end, it is mandatory for the insurance firm to honor the claim first and then recover the amount from the insurer.
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