Accident victim entitled to vehicle insurance even if travelling after unloading goods: Karnataka HC

Bengaluru: The Karnataka High Court has ruled that a claimant who travels in a goods vehicle with their merchandise is covered by the vehicle's insurance policy, even when returning in the vehicle after unloading the goods.

The decision came as the court increased the compensation awarded to a vegetable vendor involved in an accident in 2006.

On October 24, 2006, Muniyappa, a vendor from Hosakote, was travelling back to his village Mugabala in a Tata Tempo around 4 am after unloading vegetables in Bengaluru when the vehicle crashed into a tree at the Bengaluru-Kolar National highway due to negligent driving. He was shifted to Bengaluru’s Hosmat Hospital for treatment.

The Motor Accident Claims Tribunal initially awarded him Rs 3,25,000 in compensation.

Both Muniyappa and the insurance company challenged the award.

Muniyappa argued the compensation was insufficient, while the insurer claimed he was a gratuitous passenger and not covered by the policy since the vehicle was empty at the time of the accident.

Justice Hanchate Sanjeevkumar noted that an agriculturist/villager not producing the receipts and documentary evidence for hiring the Tempo cannot disprove the case of the claimant.

“Therefore, it is amounting to covering of risk as per Section 147 of the Motor Vehicles Act, as the claimant has travelled in the goods Tempo along with vegetable goods and after unloading and returning to his village is also amounting to travelling along with the goods as per Section 147 of the Motor Vehicles Act. Therefore, in this regard, the tribunal is correct in holding that the insurance company is liable to indemnify the owner and to pay compensation,” the court said.

The court also pointed to the doctor’s evidence that Muniyappa suffered permanent disability at 34% and that he walks with the help of a walker and limps on two sides as knee and hip movement is restricted by 40%. Considering the fact that Muniyappa had spent 70 days as an inpatient in hospital and the resultant loss of earning, a compensation of Rs 8,23,870 has been awarded, Rs 4,98,870 more than the amount awarded to by the tribunal.