Insurer can recover compensation amount from the insured owner of the vehicle in spite of excess of permitted number of passenger

Persons travelling in the vehicle in excess of the permitted number of six passengers, though entitled to be compensated by the owner of the vehicle, would still be entitled to receive the compensation amount from the insurer, who could recover it from the insured owner of the vehicle—Supreme Court of India

• Motor Vehicles Act, 1988 – sections 147 and 149 – Motor accident – Compensation – Liability of insurer –
• Insurance policy taken by the owner of the vehicle covering six passengers including the driver
• Vehicle while driven by father of the owner, met with an accident
• Passengers in excess of the number covered by the insurance policy, travelling in the vehicle at the time of accident
• Death/injury to the passengers
• Claim petitions – Liability of the insurer
• Held: Is confined to the number of persons covered by the insurance policy only and liability to pay the other passengers is that of the owner of the vehicle
• Persons travelling in the vehicle in excess of the permitted number of six passengers, though entitled to be compensated by the owner of the vehicle, would still be entitled to receive the compensation amount from the insurer, who could recover it from the insured owner of the vehicle
• There can be no pick and choose method to identify the five passengers, excluding the driver, in respect of whom compensation would be payable by the Insurance Company
• In the interest of justice, Insurance Company directed to deposit the total amount of compensation awarded to the claimants which would be disbursed to the claimants
• Insurance Company would be entitled to recover the amounts paid by it, in excess of its liability, from the owner of the vehicle, by putting the decree into execution.

Source:- UNITED INDIA INSURANCE CO. LTD. vs. K.M. POONAM & ORS. FEBRUARY 18, 2011 ALTAMAS KABIR AND CYRIAC JOSEPH, JJ.

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