Damaged Car Owner Can Claim Amount From Offending Vehicle's Insurer If Damage Amount Not Fully Reimbursed By His Own Insurer: Karnataka HC

The Karnataka High Court has held that in a motor accident if the total amount for repairs is not reimbursed by the insurer of the damaged vehicle, the claimant will have every right to approach the Motor Accident Claims Tribunal to seek an order for payment of the balance amount from the insurer of the offending vehicle.

A single judge bench of Justice Dr Chillakur Sumalatha partly allowed the appeal of one such claimant, a taxi owner, against the Tribunal's order rejecting his claim. It said,

“The claimant cannot claim the same amount which he received from his insurer towards damages to the vehicle again from the insurer of the offending vehicle. However, if the total amount is not reimbursed by his insurer, the claimant will have every right to seek the Tribunal to order for payment of the balance amount from the insurer of the offending vehicle.”

The appellant said he was eking out his income from taxi and sought damages of Rs.2,00,000 for the loss suffered due to the accident. He claimed he did not receive the total amount which he spent on repairs, from his insurer.

The offending vehicle's insurance company opposed the plea stating appellant's insurer had paid a sum of Rs.78,000 towards full and final settlement of the claim and therefore, claiming the same amount again is unjustifiable.

The bench on going through the records noted that the total loss sustained by the appellant was not compensated by his insurer. "It is also clear that for getting his vehicle back on the road, the appellant was required to pay the balance amount. It is not in dispute that the accident occurred due to the rash and negligent driving of the driver of respondent No. 1...Therefore, this Court is of the view that the second respondent i.e. the insurer of the offending vehicle is at liability to pay the balance. As per the discussion, the balance amount comes to Rs.33,324.”

In regards to the appellant claiming compensation for the loss of earnings, the court noted that the bills produced by the appellant were not signed and didn't mention who issued the said bills. Thus, in the light of absence of any concrete evidence with regard to the amount generated as earnings through the use of his taxi, the Court determined his nominal income and computed his loss of earnings comes at Rs.20,000.

Accordingly, the Court ordered the offending vehicle's owner and insurer to pay jointly and severally Rs.53,324, with interest. In parting, it remarked,

“When due to the acts of other, the vehicle in use gets damaged and where proof to the effect that during the period which took for getting the vehicle repaired, the owner of the vehicle could not earn as he could do so through the use of the said vehicle is produced, the Motor Accidents Claims Tribunal is under obligation to make good the loss sustained by the owner of the vehicle, due to the non use of the said vehicle for income generation which occurred due to the fault of another.”

Appearance: Advocate Suresh M Lathur for Appellant.

Advocate O. Mahesh For R2

Citation No: 2024 LiveLaw (Kar) 4

Case Title: Hemanth Raju AND Punitha H J and Another

Case No: Miscellaneous First Appeal No 6841 OF 2013.

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