The New India Assurance Co. Ltd. v. Naveen Monga & Ors.

Delhi High Court · 20 Jul 2017 · 2017:DHC:3751
R. K. Gauba
MAC Appeal No.327/2009
2017:DHC:3751
civil appeal_dismissed Significant

AI Summary

The Delhi High Court upheld that an insurer must pay compensation for a motor accident caused by the insured's negligence but can recover the amount from the insured if there is breach of policy terms.

Full Text
Translation output
MAC Appeal No.327/2009 HIGH COURT OF DELHI
Date of Decision: 20th July, 2017
MAC APPEAL 327/2009
THE NEW INDIA ASSURANCE CO. LTD. ..... Appellant
Through: Mr. Pankaj Seth, Advocate
VERSUS
NAVEEN MONGA & ORS. ..... Respondents
Through: None
CORAM:
HON'BLE MR. JUSTICE R.K.GAUBA
JUDGMENT
(ORAL)

1. By the impugned judgment dated 23.12.2008, on accident claim petition (suit no.385/2008) of the first respondent, the Motor Accident Claims Tribunal (Tribunal) awarded compensation in his favour returning a finding that the vehicle insured by the appellant / insurance company had been negligently driven, it having given rise to the cause of action but accepting the defence of breach of the terms and conditions of the policy granted recovery rights.

2. The appeal filed is pressed on sole contention that instead of being asked to pay and recover, the insurance company should have been exonerated. This contention must be noted and rejected. [See National Insurance Company V. Swaran Singh (2004) 3 SCC 297].

3. The appeal is, therefore, dismissed. 2017:DHC:3751 MAC Appeal No.327/2009

4. The Insurance company had been directed by earlier order to deposit the entire awarded amount. Some amount therefrom was released. The balance shall now be released.

5. The statutory amount shall be refunded. R.K.GAUBA, J. JULY 20, 2017 yg