When claim tribunal can not direct Insurance company to first pay and thereafter recover from owner of vehicle?

In the light of the above discussion, this court is of the view that the Claims Tribunal was not justified in holding the appellant - insurance companies to be jointly and severally liable to pay the compensation awarded to the claimants after coming to the conclusion that the insurance company is not liable to indemnify the owner, in view of the fact that the victims were gratuitous passengers in the offending vehicle. While it is true that the Claims Tribunal has in the body of the judgment permitted the insurance company to recover the amount paid towards compensation from the owner after treating the award as a decree in favour of the insurance company, in view of the fact that the passengers were gratuitous passengers in the offending vehicle, the provisions of sub-section (4) and (5) of section 149 of the Act would not be attracted and, therefore, the Claims Tribunal had no power to issue such directions to the insurance company to first pay and thereafter recover the amount from the owner.

Gujarat High Court

United India Insurance company ltd vs Minor Mahesh Kanubhai & 2 on 7 April, 2014

     Citation;2015(2) ALLMR(JOURNAL)1

HONOURABLE MS. JUSTICE HARSHA DEVANI

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