Driver Killed In Brother’s Car Crash: Chhattisgarh HC Upholds ₹2 Lakh Award, Finding He Was Not A Third Party

On 16 January 2017, Ranjeet Banjare was driving a Maruti car owned by his brother, respondent No. 1, when it lost control and struck a tree; Ranjeet died in the accident

His legal heirs claimed compensation under Section 163-A of the Motor Vehicles Act, 1988. The Tribunal found that the deceased was not an employee of the owner and was not a third party, but awarded ₹2,00,000 under the insurance policy’s owner-cum-driver coverage

The claimants appealed, seeking enhanced compensation

Section 173 of the Motor Vehicles Act provides for an appeal against an award of the Claims Tribunal, while Section 163-A was the statutory basis of the claim in this case

The Court treated the deceased driver, who was not an employee of the vehicle’s owner and was not a third party, as having the status of the owner for purposes of the insurer’s liability.

The insurer’s liability was therefore limited to the owner-cum-driver coverage expressly provided by the policy, which was ₹2,00,000

The deceased was driving the insured vehicle when the accident occurred, and the evidence did not establish that he was the owner’s employee or otherwise a third party

The policy provided ₹2,00,000 in cover for the owner-cum-driver, which the Tribunal had awarded. Since the insurer’s liability was contractual and the claimants identified no basis for an award beyond that policy cover, the High Court found no ground to enhance compensation

No order as to costs was made