Insurers liable to pay compensation despite change in vehicle ownership: SC

Uttar Pradesh State Road Transport Corporation Vs National Insurance Co. Ltd. & Ors. (Supreme Court)

SC holds that Insurance Companies are liable to pay compensation even if the vehicle is under contact and under control of State Transport Corporation and the insurance policy has been purchased by its actual owner

It is common knowledge that Insurance companies shirk their liabilities on various  technical/venial grounds but the Courts do not let the Insurance Companies escape from their liabilities.

One such matter recently on 14 July 2021 came up before the Apex Court in Civil Appeal nos.18490-18491 of 2017 in the case of Uttar Pradesh State Road Transport Corporation  Vs. National Insurance Co.Ltd. & Ors.

The brief facts of the case are that the  appellant-Corporation had hired a bus  under a written contract. The said bus was duly insured by the owner of the bus. However, during the validity of the insurance, a fatal accident took place with the said bus which resulted in the death of one person. A claim petition was duly filed by the legal heirs of the deceased before the Motor Accident Claim Tribunal. The Corporation brought on record the contract entered into between the Corporation and the bus owner as well as the insurance policy issued by the Insurance Company. The Tribunal by an Award held the Insurance Company  liable to pay compensation of Rs.1,82,000/- with interest at the rate of 6% per annum to the claimants.

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