• Compensation under Section 166 of M.V. Act

I met with an accident.lost my left leg.vehicle involved was insured with insurance co. the owner of vehicle died before accident and before claim petition filed by me. policy is still live.and also live at the time of accident. policy also  renew after the death of owner.in short at the time of accident policy of vehicle is live, owner is died,but contract was renewed and policy is live. now insurance co.take plea " that at the time of accident and before  filing the claim petition  the owner of vehicle is died ,thatswhy the contract made between the company and owner of the vehicle become nul and void. and thatswhy there is no liebility on the insurance co. for paying compentation to applicant. " now what i should do or what i should explain before the court about this law point ? i dunot want to take help from lower.please gime me fully defance with support of deferent judgement given by deferent highcourt and suprem court also.
Asked 1 year ago in Civil Law from Junagadh, Gujarat
1) who was driving the car at time of accident?

2) did the family members intimate the insurance company  about death of the owner of vehicle? 

3) on death of the main policy holder the insurance policy would come to an end 

4) your claim for compensation would be against the driver of the vehicle as insurance company will refuse to pay compensation 
Ajay Sethi
Advocate, Mumbai
23155 Answers
1216 Consultations
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Hi, when the insurance police is existed  then it is the duty of the insurance company has to pay the amount.

2. Generally these are all the stock defense taken by the insurance company.
Pradeep Bharathipura
Advocate, Bangalore
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133 Consultations
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The Division Bench of gujrat high court in the case of United Insurance co. Ltd Vs. Manjulaben Parshottamdas Patel And Others Reported IN 1997 ACJ 740 held that even after the death of the insured the policy was renewed in his name the contract of the insurance came to an end and was no longer enforceable at law. It was sought to be argued before the Division Bench in that case that the insurance company was informed about the death of the insured by the agent however the Division Bench found that there was no cogent evidence to show that the insurance company was informed about the death of Joitabhai (deceased owner) and policy came to be issued. The Court pointed out that "The question as of liability of the insurance company and when from the evidence on record it cannot be established that the Insurance company was aware of the death of Joitabhai, the insurance company cannot be held liable simply because the policy continued in the name of the dead person. Therefore, on that ground also the Insurance company is not liable and the claimants are not entitled to get compensation from the Insurance Company. The Act of renewal of policy in the name of Joitabhai cannot come in the way of company in taking legal contention that the contract came to an end and was no longer enforceable at law."
Ajay Sethi
Advocate, Mumbai
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1216 Consultations
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Gujarat High Court
United India Insurance Co. Ltd. vs Mohanlal Nandiram on 10 November, 1998
Equivalent citations: 2001 ACJ 567, (2000) GLR 523

It is very clear that it is because of a contractual obligation the liability of the Insurance Company to indemnify the person insured arises. If the person insured is held liable, then certainly the insurance company is liable to indemnify the insured person. In the instant case the insured person having expired 45 days before the accident the respondent No. 2 was plying the vehicle of his own and was holding out as an owner of the vehicle insurer cannot be held liable.


20. Policy protects the insured owner. Either in case of a special statutory provision or by novation, amount may be claimed from the insurer but not otherwise. Insurer issuing a policy on the basis of a personal contract, personal indemnity cannot be assigned. However, with the consent of all the parties concerned, a new contract can be substituted for one that was already made. In view of such a contract, the purchaser of a vehicle from the owner of it may become a policy holder after purchasing a vehicle. After the death of a policy holder of a vehicle, person who inherited or acquired that vehicle has to get his name substituted under the agreement with the insurer if any, or has to get the policy afresh.
Ajay Sethi
Advocate, Mumbai
23155 Answers
1216 Consultations
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Upon death of the policy holder the insurance policy would come to an end even though the police was in force as on the date of the accident. your claim for claim/compensation would be against the driver of the vehicle as insurance company may refuse to settle the claim on the police whose holder died and the policy automatically terminates on the death of the olicy holder as per the policy conditions.. 
T Kalaiselvan
Advocate, Vellore
13964 Answers
127 Consultations
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1. The plea of the insurance company is baseless and preposterous. If the police was in existence as on the date of accident it is liable thereunder. 

2. You are already taking help from 'lower' by writing on this forum. So better engage a lawyer for your defence and in support of your claim. Judgments alone do not help in the court. 
Ashish Davessar
Advocate, Jaipur
18083 Answers
447 Consultations
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