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Insurance firms can't be liable to pay compensation to those who travel in goods carriers: Madras HC

Press Trust of India  |  Chennai 

The Friday held that companies cannot be made liable to pay compensation to accident victims who travel in goods carriers.

Justices K K Sasidharan and R Subramanian said that in the light of the categorical pronouncements of the in various accidents, Motor Accidents Claims Tribunals are not right in directing companies to pay the compensation and recover the same from the vehicle owner.

The bench gave the ruling while passing orders on a batch of appeals from Bharati AXA General Company Limited in Bengaluru, challenging a September 23, 2014 order of the in Dharmapuri, on October 24.

On September 1 2011, a 16-member marriage party from Kottapatty village had engaged a to go to Soolakurichi to attend the event. On the way back, the van turned turtle, killing some people and injuring others.

They moved the tribunal, which in September 2014 awarded various amounts.

The tribunal directed the insurance firm to pay the amount and recover it later from the vehicle owner.

Aggrieved, the insurance company moved the court.

The court said it was no doubt true that in many cases, the claimants may not be able to realise the award amount from the owners of the vehicles involved in the accident.

"But the said factual situation alone cannot impel us to do something against the provisions of the statute and the decisions of the larger benches of the Supreme Court," the bench added.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, November 09 2018. 20:35 IST