Pragjibhai Bhagvanbhai Kanzariya & Ors. vs Rajubhai Ramsingbhai Parmar & Ors.

Headnote AI-drafted · Reviewed and approved

These were a batch of First Appeals filed under Section 173 of the Motor Vehicles Act, 1988 by the original claimants, being aggrieved by a common judgment and award dated 31.07.2018 passed by the Motor Accident Claims Tribunal, Main, Surendranagar in MACP Nos. 117-129 of 2015, 143 of 2015 and 165-166 of 2015. The claims arose out of a road accident wherein a tourist luxury bus bearing No. GJ-14X-9900, travelling from Surendranagar to Nepal, fell into a 200-metre deep valley at Jhyarlekhola on the East-West Highway, District Dhading, Nepal, due to the rash and negligent driving of the opponent-driver, resulting in deaths and grievous injuries to passengers. The Tribunal had awarded compensation to the claimants but exonerated the insurer-opponent no. 3 on the ground that the accident occurred outside India.

The principal questions raised in the appeals were: (i) whether the insurance company was liable to indemnify the owner despite the accident having occurred in Nepal; and (ii) whether the quantum of compensation awarded by the Tribunal was adequate. The appellants contended that a valid insurance policy with third-party cover was in force on the date of the accident, that the passengers were third parties qua the insured vehicle, and that in view of the treaty between India and Nepal—under which even passport requirements are waived—and the valid permits issued by RTO Surendranagar, RTO Amreli and the Nepalese government authorities, the exclusion clause restricting liability to accidents within India ought not to be applied.

All the appeals were heard together with the consent of the parties' advocates and disposed of by a common oral judgment, with the parties being referred to by their original status before the Tribunal.

Catchwords: Motor Vehicles Act · motor accident claim · third party insurance · accident in Nepal · insurance liability · exoneration of insurer · rash and negligent driving · tourist bus · quantum of compensation · permit · India-Nepal treaty · geographical limit