Sunday, 12 October 2025

Bombay HC: Insurance company must examine witnesses to prove breach of policy conditions that passengers were travelling by paying fare

  In my view, it is the appellant’s stand that at the time of accident fare paying passengers were travelling in the offending Jeep and they were travelling on hire and reward basis. It was the burden on the appellant to prove this fact before the Tribunal as the F.I.R. was lodged on behalf of police constable. The persons, with whom the police constable enquired, were not examined before the Tribunal. The spot panchnama does not show that chili bags were found on the spot. The persons whose statements are recorded are not injured in the said accident nor filed any claim petition. {Para 6}

7. I have gone through the case laws cited by learned counsel for the appellant. The facts of the cited case and the facts in the case at hand are different. In the present case, the persons on whose statements the F.I.R. was lodged are not examined so also the persons whose statements are recorded by the police showing that they were fare paying passengers are not examined. In view of the above, I do not find any merit in the appeal.

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

BENCH AT AURANGABAD

1005 FIRST APPEAL NO.1187 OF 2004

 The New India Assurance  Company Limited Vs  Motilal Ramdas Chaudhari

CORAM : S. G. DIGE, J.

DATED : 23rd SEPTEMBER, 2022

1. Being aggrieved and dissatisfied with the judgment and award

passed by the Motor Accidents Claims Tribunal, Dhule (for short

“Tribunal), in M.A.C.P. No. 873 of 1998, this appeal is preferred by

the appellant-original respondent No.3-Insurance Company.

2. It is the contention of learned counsel for the appellant that the

insurance policy was issued to the Jeep, it was registered as a

private vehicle. Inspite of that, the driver of the said Jeep was

carrying passengers by accepting fare from them. It is the breach of

terms of insurance policy. The passengers in the said Jeep were

travelling on hire and reward basis. In the F.I.R., it is mentioned that

the passengers in the said Jeep were travelling by paying fare. It

establishes that there was breach of the terms of policy but this fact is

not considered by the Tribunal and awarded the compensation.

Learned counsel for the appellant further submitted that the appellant

has examined officer of Insurance company to prove the insurance

policy and its terms and conditions but the said evidence is not

considered by the Tribunal. Learned counsel for the appellant relied

on the judgment of Supreme court in the case of Oriental Insurance

Company Limited vs. Premlata Shuikla and others, reported

(2007) 13 SCC 476 and the judgment of this Court in the case of The

New India Assurance Company Ltd. vs. Balu @ Balasaheb

Sitaram Berad and others, reported in 2019 (5) ALL MR 360 and

requested to allow the appeal.

3. It is the contention of learned counsel for respondent No.3 that

the F.I.R. was lodged by third party i.e. Police Constable and not by

any eye witness. The Insurance policy of said offending Jeep shows

that the Insurance is covered for 5+1 persons. Learned counsel

further submits that no witness was examined to prove that the


passengers sitting in the said Jeep were fare paying passengers. The

Tribunal has considered all aspects and passed the impugned

judgment and order. Hence, order passed by the Tribunal is legal and

valid.

4. I have heard learned counsel for both the parties, perused the

judgment and order passed by the Tribunal.

5. The issue involved in this appeal is breach of terms and

conditions of insurance policy. It is contention of learned counsel for the appellant that in the F.I.R. it is mentioned that the passengers travelling in the Jeep had paid the fare to the driver. The F.I.R. is exhibited document hence, contents of it are proved. F.I.R. is at Exh.28. The complaint was lodged by Kashinath Pardeshi, police constable. The police constable has recorded the statements of

claimant/respondent No.1 and four other persons. In the statements

of those four persons, they have stated that they have paid fare to the

driver of the Jeep for carrying chili bags and accident was occurred

due to rash and negligent driving of the Jeep driver. Accordingly, the

crime was registered against the driver of Jeep. Admittedly, the F.I.R.

is registered on the basis of complaint of police constable Kashinath

Pardeshi. Thereafter, statements of driver of offending Jeep, original

claimant and other persons are recorded. The persons, who have

stated to the police constable that they have paid fare to the Jeep

driver, are not examined before the Tribunal. Their statements are

not produced on record. The statements of claimant and Jeep driver

on which basis the F.I.R. is filed are also not produced on record.

Exhibit means a document exhibited for the purpose of being taken

into consideration in deciding some question or other in respect of

proceeding in which it is filed. The endorsement of an exhibit number

does not mean that the document has been proved. The document

is still to be proved as per the Indian Evidence Act and it’s evidentiary

value will be appreciated by the Court. The Hon’ble Supreme Court in

the case of Narbada Devi Gupta vs. Birendra Kumar Jaiswal and

Anr. reported in 2003 Supp. (5) SCR 90 held that mere marking of

an exhibit on a document doesn’t dispense with formal proof thereof.

I have seen the corroboration to the facts mentioned in the F.I.R. It is

the spot panchnama which is prepared on the same day, which is at

Exh.39. In the F.I.R. it is mentioned that the passengers were

travelling in the Jeep with chili bags but from the spot panchnama, it

nowhere appears that chili bags or chilies were found on the spot. In

the spot panchnama, it is specifically mentioned that no damage is

caused to the chilies. In the accident the Jeep was turtled and

damage was caused to the offending Jeep. The statements of four

persons recorded by the police constable Kashinath Pardeshi

specifically stated that other four passengers were carrying chili bags

in the Jeep but the panchnama does not show the chilies or chili bags

found on the spot. Moreover, in the cross examination of claimant,

which is at Exh. 27, no suggestion was given to this witness that

other persons were travelling with him as fare passengers. The

appellant has examined their officer Subhash Puranik at Exh.41 to

prove the policy which is at Exh.42. This witness has stated that the

offending Jeep was registered as private car and policy is also issued

for private car only. The risk of fare paying passengers or

passengers carrying goods are not allowed. Exh.31 is the insurance

policy which shows the licence of carrying capacity.

6. In my view, it is the appellant’s stand that at the time of

accident fare paying passengers were travelling in the offending Jeep

and they were travelling on hire and reward basis. It was the burden

on the appellant to prove this fact before the Tribunal as the F.I.R.

was lodged on behalf of police constable. The persons, with whom

the police constable enquired, were not examined before the

Tribunal. The spot panchnama does not show that chili bags were

found on the spot. The persons whose statements are recorded are

not injured in the said accident nor filed any claim petition.

7. I have gone through the case laws cited by learned counsel for

the appellant. The facts of the cited case and the facts in the case at

hand are different. In the present case, the persons on whose

statements the F.I.R. was lodged are not examined so also the

persons whose statements are recorded by the police showing that they were fare paying passengers are not examined. In view of the above, I do not find any merit in the appeal. Hence, I proceed to pass

the following order:-

O R D E R

The appeal is dismissed. No order as to costs.

(S. G. DIGE, J.)


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