Courts cannot compel insurance companies to pay compensation to unauthorised passengers
CHENNAI, NOVEMBER 10, 2018 00:00 IST
Holds that insurance companies cannot be compelled to pay compensation to unauthorised passengers
The Madras High Court has refused to consider as a precedent a judgment passed by the Supreme Court on September 5 and gone ahead to hold that courts cannot compel insurance companies to pay compensation to unauthorised or gratuitous passengers of goods vehicles and then recover the money from the owner of the vehicles. A Division Bench of Justices K.K. Sasidharan and R. Subramanian held that the September 5 judgment of the then Chief Justice of India Dipak Misra and Justice A.M. Khanwilkar in the Shivaraj versus Rajendra case could not be taken as a precedent because it was not in consonance with the previous verdicts pronounced by the court’s larger Benches.
The decision was taken while allowing a batch of appeals preferred by a private insurance company which had challenged an award passed by a motor accident claims tribunal in Dharmapuri on September 23, 2014 for payment of compensation to 18 people who met with an accident while travelling in a goods vehicle to attend a marriage.
CHENNAI, NOVEMBER 10, 2018 00:00 IST
Holds that insurance companies cannot be compelled to pay compensation to unauthorised passengers
The Madras High Court has refused to consider as a precedent a judgment passed by the Supreme Court on September 5 and gone ahead to hold that courts cannot compel insurance companies to pay compensation to unauthorised or gratuitous passengers of goods vehicles and then recover the money from the owner of the vehicles. A Division Bench of Justices K.K. Sasidharan and R. Subramanian held that the September 5 judgment of the then Chief Justice of India Dipak Misra and Justice A.M. Khanwilkar in the Shivaraj versus Rajendra case could not be taken as a precedent because it was not in consonance with the previous verdicts pronounced by the court’s larger Benches.
The decision was taken while allowing a batch of appeals preferred by a private insurance company which had challenged an award passed by a motor accident claims tribunal in Dharmapuri on September 23, 2014 for payment of compensation to 18 people who met with an accident while travelling in a goods vehicle to attend a marriage.
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