Case: A.Sridhar Vs. United India Ins.Co.Ltd

The Insurance Company has denied its liability. The Tribunal, while considering the claim of the appellant, has come to the conclusion that the accident did not take place due to rash and negligence driving of the claimant but due to oil spilling on the road. Accordingly, the Tribunal has assessed the compensation payable to the claimant at a sum of `1,60,000/- together with interest at 6% per annum under the Insurance Policy.5. In the appeal filed by the Insurance Company, the High Court, has taken exception to the order passed by the Tribunal and has come to the conclusion that the Tribunal is not justified in allowing the claim petition moved under Section 166 of the Act and ought to have determined the compensation payable under Section 140 of the Act. Accordingly, the High Court has modified the award and has reduced the compensation payable to `25,000/-.6. Aggrieved by the Judgment and Order, the claimant is before us in this appeal.

Reasoning:
7. We have heard the learned counsel for the parties and perused the record. From the evidence on record, the Tribunal holds that the appellant, while driving the motor vehicle on the fateful day, met with an accident not because of the fault of the owner of the vehicle or because of the fault of the other vehicle, but because of the oil spill on the road. Therefore, the negligence can be attributable only on the person who was driving the vehicle and hence, is not entitled to compensation under the Insurance Policy. Therefore, the High Court was justified in invoking the beneficial legislation and in directing the Insurance Company to pay limited amount by way of compensation to the injured person of an accident arising out of the use of a motor cycle on the basis ofsince the accident has arisen out of use of motor vehicle and has resulted in grievous injuries to the claimant.