F.A.O.NO. 2846 OF 2010 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH F.A.O.NO. 2846 OF 2010 Date of decision:30th August, 2010 Bajaj Allianz General Insurance Company Limited .......Appellant Versus Noor Sabha Khatoon and others ........Respondents BEFORE: HON'BLE MR. JUSTICE K.KANNAN Present: Mr. Subhash Goyal, Advocate, for the appellant. Mr. Ashit Malik, Advocate, for the respondents. 1. Whether Reporters of local papers may be allowed to see the judgment? Yes/No 2. To be referred to the Reporters or not?Yes/No 3. Whether the judgment should be reported in the Digest? Yes/No K.Kannan, J.(Oral) 1. The Insurance Company is in appeal contending that the driver who drove the vehicle had taken the vehicle with the consent of the owner as a borrower and had dashed against another vehicle. The claim had been made under Section 163(A) of Motor Vehicles Act(hereinafter referred to as the 'Act') against F.A.O.NO. 2846 OF 2010 2 the insurer to which the defence was, in terms of the decision of the Hon'ble Supreme Court in Ningamma and another Versus United India Insurance Company Ltd. (2009) ACJ 2020, a borrower from the owner who involves the vehicle in a motor accident shall not be liable to make the insurer liable. The case was dealt with by the Hon'ble Supreme Court without reference to the particular policy of insurance and therefore, the judgment itself provided that the matter was to be remitted to the Tribunal for consideration of the case of liability in terms of the policy. 2. In this case, the vehicle which was involved in the accident was subject to package policy and in terms of Section II (3) of the policy the Insurance Company had agreed to indemnify any driver who is driving the vehicle. The clause 3 of Section II is reproduced in the following words:- “In terms of and subject to the limitations of the indemnity granted by this Section to the Insured, the Company will indemnify any Driver who is driving the vehicle on the Insured's order or with insured's permission provided that such Driver shall as though he/she was the Insured observe fulfil and be subject to the terms exceptions and conditions of this Policy in so far as they apply.” 3. In terms of the clause of the policy the insurer shall become liable. The judgment of the Hon'ble Supreme Court in F.A.O.NO. 2846 OF 2010 3 Ningama's case(supra) will not apply to such a situation. 4. The award of the Tribunal is justified and the appeal is dismissed. [K.KANNAN] JUDGE 30th August, 2010 Shivani Kaushik