The Gujarat High Court has clarified that the 1994 amendment to the Motor Vehicle Act is not retrospective in nature and therefore Insurance Company is not liable if victim was travelling in goods vehicle prior to the period.
The single-judge bench of Justice Hemant M Prachchhak was adjudicating upon an appeal filed by an Insurance Company against award by MACT whereby the learned Tribunal partly allowed the claim petition by awarding Rs.4,16,000/- with the interest @ 9% and held both the insurance companies as 50% liable to pay the compensation to the claimants.
The Counsel for the Company submitted that the award has been challenged on the ground that the learned Tribunal has committed an error while fastening the liability on the appellant Insurance Company overlooking the fact that the deceased was travelling in the goods vehicle and the accident is prior to the date of amendment and therefore, the learned Tribunal has committed a grave error.
It was further contended that the policy of the vehicle involved in the accident, no extra premium was paid by the owner of the vehicle and therefore, no additional coverage or risk is covered by the present appellant insurance company.
It was also contended that the accident took place on 9.1.1994 prior to the date of amendment and therefore, also present appellant insurance company is not held liable to pay compensation. It was also further contended that so far as the liability of both the vehicles is concerned, the Tribunal has committed an error by coming to a conclusion that both the drivers are equally responsible and negligent for the accident. He averred that the tempo was in correct side and therefore, the liability of 50% fastened on present appellant is erroneous and bad in law.
Reliance was placed on New India Ass. Co. Ltd. Vs. Asha Rani & Ors, 2002 Latest Caselaw 516 SC, M/S. National Insurance Co. Ltd. Vs. Baljit Kaur & Ors, 2004 Latest Caselaw 15 SC. The Counsel denied Joint Liability referring to Kenyei vs. New India Insurance Company and others.
The Court agreed with the contentions and was of the view that impugned judgment and award is required to be modified to the extent that the present appellant insurance company is exonerated from the liability fasten upon it as the deceased was travelling in goods vehicle and it is clearly breach of the policy and therefore, the insurance company is not held liable.
"Considering the ratio laid down by Hon’ble Apex Court and considering the fact that the date of accident is of 9.1.1994 i.e. prior to the date of amendment in Section 147 of the Motor Vehicles Act which has come into force in November 1994 and therefore, the present appeal deserves to be allowed."
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