AIROnline 2025 SC 646

Motor Vehicles Act (59 of 1988) , S.147, S.149— Motor accident – Claim for compensation – Personal accident cover – Liability under – Deceased was brother of vehicle owner and died in an accident due to a tyre burst while driving vehicle – It is settled that insurer has no statutory liability to cover the risk of the owner, or the driver of the vehicle, who steps into the shoes of the owner, when the statutory liability is restricted to third party liabilities – Contractual liability of a personal accident cover and not the statutory liability was basis of claim raised – Admittedly, there was a personal accident cover taken – Insurance company had not pleaded limited liability before tribunal or the High Court – High Court erred in looking into the policy, and recording a finding that policy with additional premium covered liability only to the extent of Rs.2,00,000/- and reducing liability accordingly – Award of tribunal was restored.
AIROnline 2018 BOM 1695-Reversed

(Para 7
10
11
12
13
14)

…..