Insurer must cover compensation for accident involving relief vehicle, rules Karnataka high court
Bengaluru: Karnataka high court has ruled that the insurance company must cover compensation for an accident involving a relief or spare vehicle used following the breakdown of a scheduled bus.
The court stated that such use doesn't constitute a fundamental breach of permit conditions exempting the insurer from liability.
The court's decision came after it allowed appeals filed by two victims and the bus owner in connection with an accident that occurred on Jan 21, 2014. At approximately 11.45am, Ganesh and Basavaraj were travelling on a motorcycle from Mudur to Haveri. Near the sugar factory in Sangur village, a high-speed private bus collided with the motorcycle, causing both riders to fall and sustain grievous injuries.
The duo subsequently filed petitions seeking compensation.
On Jan 24, 2017, the motor accident claims tribunal in Haveri awarded compensation, placing liability on the bus owner, KM Altaf Hussain, on the grounds that the bus had deviated from its permitted route, violating permit conditions. Ganesh received Rs 3,71,030, and Basavaraj was awarded Rs 1,27,250.
The claimants appealed for increased compensation, while Altaf appealed, arguing that the insurance company should settle the compensation.
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He contended that although the bus had a permit only from Shivamogga to Hangal, it travelled beyond Hangal to Haveri and was being used as a relief vehicle when the accident occurred.
Justice Hanchate Sanjeevkumar, after reviewing the materials on record, noted that the vehicle was employed as a relief vehicle under compelling circumstances, which did not amount to a fundamental breach of conditions. He determined that the tribunal had erred by not exempting the case as per Rule 57 of the Karnataka Motor Vehicles Rules 1989, given the route deviation was under compelling circumstances.
Allowing the claimants' appeals, the judge also increased the compensation payable to Ganesh to Rs 7,15,550, considering the severity of his injuries. It awarded Basavaraj Rs 2,24,810. The compensation must be paid by United Insurance Company Limited, the insurer of the vehicle.
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