Bus being used as relief vehicle not breach of insurance condition: Karnataka High Court

Bengaluru: The Karnataka High Court has said that the bus used as a relief vehicle under compelling circumstances cannot be considered as a fundamental breach so as to exonerate the insurance company.

Justice Hanchate Sanjeevkumar said this while holding that the insurance company shall indemnify the owner of the bus, used as a relief vehicle, by paying compensation to the claimants/victims of the accident.

The claimants, Ganesh and Basavaraj were riding from Mudur to Haveri when a bus collided with their motorcycle at Sangur village. The accident had occurred on January 21, 2014 and both the claimants sustained grievous injuries.

The bus involved in the accident had a permit for the route between Shivamogga and Hangal. On that day, it had travelled beyond Hangal up till Haveri and the accident occurred while returning from Haveri. The bus involved in the accident was operating in that route as the bus having the permit had broken down.

On January 24, 2017, the Motor Accident Claims Tribunal, Haveri awarded the compensation to the claimants, however fastened the liability on the owner of the bus involved in the accident.

The tribunal stated that the bus had travelled on a route other than the permitted route, thereby violating permit conditions. Both the claimants and K M Altaf Hussain, the owner of the bus, moved an appeal before the high court. The claimants sought an enhanced compensation while the owner of the bus prayed that the insurance company should settle the compensation amount

After perusing the materials and the statute, Justice Hanchate Sanjeevkumar noted that use of the bus as a relief vehicle in compelling circumstances cannot be termed a fundamental breach of condition.

“It is not a case where the bus involved in the accident did not have a permit at all. Here, it was only a deviation of route under compelling circumstances, and the bus was used as a relief vehicle. Therefore, as per Rule 57 of the Karnataka Motor Vehicles Rules, 1989, Section 66 of the Act, 1988, is exempted,” the court said.

Allowing the appeals filed by the claimants, the court enhanced the compensation payable to Ganesh to Rs 7,15,550 and ordered a modified compensation of Rs 2,24,810 to Basavaraj. The compensation amount has to be paid by the insurance company, the court said.