Pay entire damages to victims, court tells bus owners
There is more bad news in store for Blueline bus owners reeling under the recent High Court order to pay immediate interim compensation to accident victims to get their buses back on the road, reports Harish V Nair.delhi Updated: Oct 24, 2008 00:26 IST
There is more bad news in store for Blueline bus owners reeling under the recent High Court order to pay immediate interim compensation to accident victims to get their buses back on the road.
On Thursday, Justice VB Gupta said the owner is entitled to pay the entire compensation amount awarded by a tribunal to the victim or his kin from his pocket in the event of violation of any condition in the insurance policy and the insurance company is not liable to indemnify the owner.
The order was issued as a warning to vehicle owners who appoint drivers without a check.
Justice Gupta gave the order while dismissing an appeal filed by the bus owner Sanjeev Sharma against an order of the Motor Accidents Claims Tribunal MACT) asking him to pay an amount of Rs 4.4 lakh as compensation to the parents of 22-year-old Asha who was run over seven years ago.
Oriental Insurance Company, with which the bus was insured, refused to indemnify the bus owner, as the driver, Ramesh Kumar, did not have a licence.
Justice Gupta upheld the contention of the insurance company, that this was a breach of condition in the policy, therefore they were not liable to pay the compensation amount.
“It is clear that the owner of the offending vehicle have not taken all the necessary precautions while appointing the driver and therefore he cannot escape the statutory liability”, said Justice Gupta.
The court also imposed a fine of Rs 10,000 on Sharma for filing the appeal.