Imposed condition

Ladhu Ram Chowdhary (Querist) 02 July 2008 This query is : Resolved
Tribunal imposed the condition that owner of vehicle will furnish the security first and thereafter the insurance company will satisfy the compensation amount -condition is legal or not ?

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Guest (Expert) 02 July 2008
Tribunal according to me cannot impose such condition as the case is on both the owner and the insurer. Both will be liable for compensation on first charge basis, if one satisfy the compensation other neednot pay the compensation.

KamalNayanSaxena (Expert) 02 July 2008
yes, liability is always affixed on owner, driver and insurer jointly and severally.

Is there any other order holding that insurur can recover the awarded amount fron owner of the vehicle?

H. S. Thukral (Expert) 03 July 2008
Dear Mr. Chowdhary
While referring to opening para of my answer to your query titled Liability of Insurance co., I again find your query intriquing.

Where the compensation awarded amount exceeds the contractul/statutory liability of the insurer and addional cliam has to be met by the insured, the Tribunal shall be justified in making arrangement to secure the compensation amount by attachment or by other methods.
I shall refer to Supreme Court in
National Insurance v Anjana Shaym
2007 AIR (SC) 2870
A bus had capcity of 42 passengers and 42 passengers were insured. the bus on the day of unfortunate accident had resorted to overloadeing and had 90 passengers in it. In the claim petition the owner of the vehicle was held to be liable for extra claim beyond the liability of the insurer under the insurance contract of which there was a fundamental breach. The Tribunal could order attachment of property of the owner to recover the compensation. Insurer shall recover from the insured after satisfaction of the award.
Right Mr. Chowdhary?

Srinivas.B.S.S.T (Expert) 04 July 2008
subrogation

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