Liability of Insurance Co

Sec. 95 – Liability of the Insurance company – when vehicle is transferred. Once the company had undertaken liability to third parties incurred by the persons specified in the policy , the third parties right to recover any amount under or by virtue of the provisions of the Act is not affected by any condition in the policy [ United India Insurance Co vs. Annamma Sebastian . M.F.A.No. 651 of 1990. 4^th October, 1999. K.K.Usha & R.Rajendra Babu (J)]

Sec.95 - Unlicensed driver - Insurer is absolved of the liability. When unlicensed driver was entrusted with the Bus with the knowledge of the insured, the insurer is absolved of the liability to the third party. [The Oriental Insurance Co.Ltd vs.K.Sadanandan. MFA.No. 972/1999. Dated 2-11-199.K.K.Usha & R.Rajendra Babu (J&J)]

Sec. 95 & 147 - Gratuitous passengers in a private vehicle are covered by an insurance policy issued in terms of the provisions contained under Sec. 147 are also covered by the Act policy. [Oriental Insurance Co Ltd. Vs Ajaykumar and others. 1999 (2)KLJ 319 (FB) = 1999(2) KLT 886 .. K.K.Usha, K.S.Radhkrishnan & R.Rajendra Babu {JJJ}]

Sec.95(2)(b)(i). Payment of additional insurance premium has no relevancy when there is no claim for unlimited liability. [Santhoshkumar & Ors. Vs. Kareem & Ors. 1999(1) KLT 481 = 1999(1) KLJ 270. P.A. Mohammed & D. Sreedevi, JJ.]

Sec.95 (b)(1)(b)(i) - Accident inside or factory - Liability of insurance company - The clear intention of the insurer is to cover liability with regard to third party risks arising out of the use of motor vehicles even in a private land if such liability in incurred by the insured legally. [United India Insurance Company Ltd. v. Pierce Leslie India Ltd., M.F.A.No.677 of 1991, dated 3-1-2000. P.A. Mohammed & S. Marimuthu (JJ)]

Sec.96(2)(b)(i), Cl.(a) . Liability to pay compensation to a third party by the insurance company . Even if there is violation of policy conditions by the owner of the vehicle, the insurance company is liable to pay compensation. [Oriental Insurance Co. Vs. Nani Janaki & Ors. 1999(1) KLJ 36. P.A. Mohamed & S. Sankarasubban, J.]

Sec.96(2) of the Motor Vehicles Act, 1939 - When the vehicle is driven by an unlicenced driver, the Insurance Company gets exonerated from its liability to third party. The exception to the above rule is only when the owner has entrusted the vehicle with a licenced driver and who in turn without the permission of the owner allowed other person without licence to drive the vehicle. [. [C. Govindankutty Nair v. K.P. Gopalakrishnan. M.F.A.No.5 of 1992, dated 10-11-1999. Mrs. K.K. Usha & D. Sreedevi, JJ]

Sec. 110 - Claim for accident occured to the hirer of a vehicle against the registered owner . Insurance company is not liable . There is no liability to the insurance company or to the registered owner of a vehicle while the hirer himself was driving the vehicle at the time of accident. [ Oriental Insurance Co. Ltd vs Vasudevan and ors. 2001 (1) KLT 941. J.B.Koshy & N.Krishnan Nair (J&J)]

Sec. 149 (4) - Driver is not having a valid licence - Insurer cannot escape from the liability - Insurer has to pay compensation by virtue of the conditions imposed - But they can realise it from the insured. [The New India Assurance Co. vs Sulochana . 2001 (3) KLT SN 142 Page No.110 = 2001 (2) KLJ 739. K.A.Abdul Gafoor & P.R.Raman (JJ)]