Madras HC Upholds Rs 1.71 Lakh Award Against Insurer For Vehicle Totalled In Collision, Citing Separate Damage-Cover Premium

The claimant’s vehicle, TN-45-AM-1609, was damaged when a lorry insured with the appellant, travelling in the opposite direction, crossed onto the claimant’s side of the road and collided with it.

The accident also caused the deaths of two occupants of the claimant’s vehicle.

The claimant sought ₹3,00,000 for the vehicle damage.

The Tribunal awarded ₹1,71,250 with interest at 7.5% per annum, relying on the assessment and valuation material.

The insurer appealed under Section 173 of the Motor Vehicles Act, disputing liability and asserting that the requisite premium for damage coverage had not been paid.

The appeal was brought under Section 173 of the Motor Vehicles Act.

The Court’s reasoning applied the principle that compensation for vehicle damage may be awarded where the evidence establishes the damage and the insured vehicle’s driver’s negligence, and the policy provides coverage for that loss.

The Court relied on the insurance policy and the evidentiary record; it cited no specific precedent or further statutory provision.

The valuation certificate, valuer’s evidence, and Motor Vehicle Inspector’s report established that the claimant’s vehicle was totally damaged.

The Court found that the insured lorry crossed onto the claimant’s side of the road and collided with the vehicle, establishing the insured driver’s negligence.

It also examined the policy and found that a separate premium had been paid for damage coverage, rejecting the insurer’s contention that the loss was uninsured.

The Court therefore found no basis to disturb the Tribunal’s award.

It directed the insurer to deposit the award amount, accrued interest, and costs, if not already deposited, within six weeks of receiving the judgment; the claimant may withdraw the amount in accordance with law.

No costs were awarded in the appeal.