Orissa HC Upholds ₹64,000 Injury Award After Insurer Fails To Prove Vehicle Was Uninsured

The Fifth Motor Accident Claims Tribunal, Khurda, awarded the claimant ₹64,000 with simple interest at 6% per annum from the date of the claim application, for injuries sustained in an accident on 25 April 2003.

The New India Assurance Co. Ltd. appealed, arguing that the offending vehicle was not insured with it on the accident date.

The insurer also sought condonation of a 28-day delay in filing the appeal.

The High Court condoned the delay and considered the appeal on its merits.

Under Section 5 of the Limitation Act, 1963, delay may be condoned where sufficient cause is shown; the court may adopt a liberal, pragmatic approach, particularly where the delay is short and the explanation is credible.

The court applied the pleading and burden-of-proof principles under Section 101 of the Indian Evidence Act, 1872 (identified in the judgment as corresponding to Section 104 of the Bharatiya Sakshya Adhiniyam): a party seeking a finding in its favour must plead and produce evidence supporting it, and the burden rests on the party that would fail if no evidence were led.

The judgment also refers to Order XLI Rule 14(4) of the Code of Civil Procedure in dispensing with re-issuance of notice to the owner, who had remained ex parte before the Tribunal.

The insurer attributed the short delay to late processing of the file, and the Court found no indication of deliberate delay or culpable apathy; it therefore accepted the explanation as sufficient.

On liability, the insurer had not specifically pleaded that the vehicle was uninsured: its written statement merely did not admit coverage and called for production of the policy. It also produced no oral or documentary evidence, including the insurance policy, to substantiate its appellate contention that coverage began after the accident date. Applying the burden-of-proof principle, the Court held that the insurer had not established the factual basis for avoiding liability.

It confirmed the award and directed the insurer to pay the compensation with interest within eight weeks; the statutory deposit and accrued interest were to be refunded upon proof of payment before the Tribunal.