Insurance relief awarded to parents of accident victim

​Hyderabad: Justice Praveen Kumar of the High Court at Hyderabad has declared that when a third party is covered by an insurance the Insurance company is bound to pay the compensation awarded by the Motor Accidents Claim Tribunal.

The judge on Tuesday dismissed an appeal filed by New India Insurance Company challenging an award of Rs1.50 lakh to the parents of the deceased. A person, named V Chenniah, died in an accident involving tractor in April 2001 at a village in Mahbubnagar.

The parents of the 20 year old victim filed the claim petition. The Insurance Company took the plea that the vehicle was not a passenger vehicle and the deceased was an unauthorised passenger and therefore not covered by insurance.

The judge pointed out that the case was covered by Farmers Package Insurance Policy covering the risk of six labourers.

Rejecting the plea of the Insurance Company, the judge pointed out that at the time of the accident the vehicle was being used only for agricultural purpose and the accident was due to the rash and negligent driving of the tractor driver. The judge dismissed the appeal.