The Madras High Court has ruled that an insurance company is entitled to retrieve the compensation amount deposited in a motor accident case where the deceased was solely responsible for the accident due to negligent driving. The case involved a Toyota Qualis Car that met with an accident in 2009, resulting in the death of the driver. The driver’s wife filed a claim petition seeking compensation of Rs 3,93,500, which was awarded by the Motor Accidents Claims Tribunal, along with interest. However, the insurance company appealed to the High Court, arguing that the accident occurred solely due to the driver’s rash and negligent act.
The High Court’s Single Bench, consisting of Justice R. Poornima, observed that when a person borrows a vehicle and drives it, they step into the shoes of the owner. In this case, the deceased drove the vehicle negligently and was solely responsible for the accident, which means he cannot claim compensation from the insurance company as he does not fall within the category of a third party. The court referred to a Supreme Court decision in Ramkhiladi and another Vs. United India Insurance Company and another (2020), which held that a claim petition under Section 163-A is not maintainable by the borrower/permissive user of the vehicle against the owner and/or insurer.
The court also noted that the FIR recorded the deceased as the driver responsible for the accident, and the claimant did not dispute this fact. During the trial, the claimant admitted that her husband was driving the vehicle at the time of the accident. The court concluded that the deceased was not entitled to maintain a claim for compensation as he had borrowed the vehicle from the lawful owner and driven it negligently, resulting in the accident. Therefore, the insurance company was entitled to get back the deposited amount. The High Court allowed the appeal and set aside the impugned order of the Tribunal, directing the insurance company to retrieve the deposited amount. The case highlights the importance of determining liability in motor accident cases and the application of Section 163-A of the Motor Vehicles Act.