Claims Manager, ICICI Lombard General Insurance Company Ltd. vs G.Mayil Vaganan

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The claimant, who was the owner-driver of a Honda Amaze car insured with ICICI Lombard General Insurance Company Ltd., sustained injuries in a motor accident on 30.11.2014 when his vehicle collided with a motorcycle. The Motor Accident Claims Tribunal, Srivilliputhur held that the claimant had sustained injury on account of his own wrong and that a claim under Section 163A of the Motor Vehicles Act, 1988 was not maintainable by an owner-driver against his own insurer, but invoking the personal accident coverage clause of the policy, awarded compensation of Rs.2,00,000/- with interest and costs. Both the Insurer and the claimant challenged the award in cross-appeals before the Madurai Bench of the Madras High Court.

The Insurer contended that the claimant, being the owner of the vehicle and not a third party, could not maintain a claim petition before the Motor Accident Claims Tribunal, and that the personal accident coverage under the policy schedule did not cover the 5% disability suffered by the claimant, making the award of Rs.2,00,000/- liable to be set aside. The claimant, on the other hand, sought enhancement of compensation urging that the Tribunal failed to apply the multiplier method for assessing disability compensation and made no award under heads such as pain and suffering, extra nourishment, attendant charges, and loss of amenities.

The High Court considered the rival contentions and examined the Supreme Court's judgment in Ningamma v. United India Insurance Company Ltd. (2009) and related precedents concerning the maintainability of claims by owner-drivers under Section 163A of the Motor Vehicles Act and the extent of liability of an insurer under personal accident coverage clauses, with a view to determining both the maintainability of the claim and the appropriate quantum of compensation.

Catchwords: Motor Vehicles Act Section 163A owner-driver third party personal accident coverage insurance policy disability compensation multiplier method Motor Accident Claims Tribunal maintainability quantum of compensation ICICI Lombard Ningamma judgment