An identical question came to be considered by this Court in
the case of Ningamma (supra). In that case, the deceased was
driving a motorcycle which was borrowed from its real owner and
met with an accident by dashing against a bullock cart i.e. without
involving any other vehicle. The claim petition was filed under
Section 163A of the Act by the legal representatives of the deceased
against the real owner of the motorcycle which was being driven by
the deceased. To that, this Court has observed and held that since
the deceased has stepped into the shoes of the owner of the vehicle,
Section 163A of the Act cannot apply wherein the owner of the
vehicle himself is involved. Consequently, it was held that the legal
representatives of the deceased could not have claimed the
compensation under Section 163A of the Act. Therefore, as such, in
the present case, the claimants could have even claimed the
compensation and/or filed the claim petition under Section 163A of
the Act against the driver, owner and insurance company of the
offending vehicle i.e. motorcycle bearing registration No. RJ 29 2M
9223, being a third party with respect to the offending vehicle.
However, no claim under Section 163A was filed against the driver,
owner and/or insurance company of the motorcycle bearing
registration No. RJ 29 2M 9223. It is an admitted position that
the claim under Section 163A of the Act was only against the owner
and the insurance company of the motorcycle bearing registration
No. RJ 02 SA 7811 which was borrowed by the deceased from the
opponentowner
Bhagwan Sahay. Therefore, applying the law laid
down by this Court in the case of Ningamma (supra), and as the
deceased has stepped into the shoes of the owner of the vehicle
bearing registration No. RJ 02 SA 7811, as rightly held by the High
Court, the claim petition under Section 163A of the Act against the
owner and insurance company of the vehicle bearing registration
No. RJ 02 SA 7811 shall not be maintainable.
5.5 It is true that, in a claim under Section 163A of the Act, there
is no need for the claimants to plead or establish the negligence
and/or that the death in respect of which the claim petition is
sought to be established was due to wrongful act, neglect or default
of the owner of the vehicle concerned. It is also true that the claim
petition under Section 163A of the Act is based on the principle of
no fault liability. However, at the same time, the deceased has to be
a third party and cannot maintain a claim under Section 163A of
the Act against the owner/insurer of the vehicle which is borrowed
by him as he will be in the shoes of the owner and he cannot
maintain a claim under Section 163A of the Act against the owner
and insurer of the vehicle bearing registration No. RJ 02 SA 7811.
In the present case, the parties are governed by the contract of
insurance and under the contract of insurance the liability of the
insurance company would be qua third party only. In the present
case, as observed hereinabove, the deceased cannot be said to be a
third party with respect to the insured vehicle bearing registration
No. RJ 02 SA 7811. There cannot be any dispute that the liability
of the insurance company would be as per the terms and conditions
of the contract of insurance. As held by this Court in the case of
Dhanraj (supra), an insurance policy covers the liability incurred
by the insured in respect of death of or bodily injury to any person
(including an owner of the goods or his authorized representative)
carried in the vehicle or damage to any property of a third party
caused by or arising out of the use of the vehicle. In the said
decision, it is further held by this Court that Section 147 does not
require an insurance company to assume risk for death or bodily
injury to the owner of the vehicle.
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 9393 OF 2019
Ramkhiladi Vs The United India Insurance Company
Dated:January 7, 2020.
M. R. Shah, J.
Citation: (2020) 2 SCC 550

