Whether Vehicle Owner Himself Can Receive Compensation Under His Own Insurance Policy If He Was At Fault? Supreme Court To Examine

Whether the owner himself can be a recipient of the compensation under his own Insurance Policy, if he was at fault? The Supreme Court would examine this legal issue raised in a special leave petition filed against Allahabad High Court judgment.

In this case, the person who was allegedly responsible for the accident was the person driving the vehicle whose wife died in the incident and the minor children are the claimants arraying father as a respondent. The Tribunal's judgment awarding the compensation was upheld by the High Court.

Challenging the High Court judgment, the insurance company has approached the High Court raising the above issue (though such an issue is not seen dealt in the high court judgment). While issuing notice, the bench directed that 2/3rd of the amount be released to the two children who were then minors while 1/3rd of the amount will be retained with the High Court in an FDR bearing interest.

Before the bench of Justice Sanjay Kishan Kaul, Dinesh Maheshwari and Hrishikesh Roy, it was submitted that there is a conflict of decisions of the High Courts on the issue in question and the Calcutta High Court opined to the contrary. 

In New India Assurance Company Ltd v. Srikanta Tewari, the Calcutta High Court had considered the issue whether the claimant being the insured himself is entitled to maintain the claim petition as being the sole heir and legal representative of the deceased who died in a motor accident arising out of the use of vehicle of the insured. The High Court had held that the insurer insures the liability of the insured and does not insure the insured himself. The appeal filed against this judgment was dismissed by the Apex Court leaving the question of law open.

CASE: ORIENTAL INSURANCE CO. LIMITED vs HARISHIT SRIVASTAVA @ UMANG [ SLP (C) 15160/2020]

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