Case Analysis - Khenyei v. New India Assurance Co. Ltd. (2005)

CASE STUDY

Khenyei v. New India Assurance Co. Ltd. (2005)

Introduction


It is a case of composite negligence where injuries have been caused to the claimants by the combined wrongful act of joint tortfeasors. In the case of an accident caused by the negligence of joint tortfeasors, all the persons who aid or counsel or direct or join in the committal of a wrongful act, are liable. In such a case, the liability is always joint and several.


The extent of negligence of joint tortfeasors in such a case is immaterial for the satisfaction of the claim of the plaintiff/claimant and need not be determined by the court. In the case of composite negligence, apportionment of compensation between tortfeasors for making payment to the plaintiff is not permissible as the plaintiff/claimant has the right to recover the entire amount from the easiest targets/solvent defendant.



Facts About the Case


On 29.7.2003, all the claimants were travelling in Bus No. NL-06/B/0027. At the relevant point of time, the Trailor truck was carrying iron beams and coming from the opposite direction and one iron beam came out of the body of the truck and this iron beam perforated right side of the body of the bus causing grievous injuries to a good number of passengers including the claimant.

Accordingly, the injured persons filed the claim cases alleging that the driver of the Trailor-Truck was responsible for the aforesaid accident. It was specifically averred that the driver of the truck drove the vehicle in a rash and negligent manner. Besides this, as per the claim cases after investigation charge-sheet was also filed against the driver of the trailer truck.


Principle Used => Composite Negligence


Issues in the Case


1.The question arises that whether a person is injured without any fault of his own, but by the combined effects of the negligence of two persons of whom the one is not responsible for the other.

2. The second question arises that what is the remedy of a tort feasor who has satisfied the award, but who does not know the particulars of the vehicle which was responsible for the accident?



Arguments advanced by both the Parties



By Petitioner => Petitioner, Khenyei, filed the case in the court on the grounds for non-compensation for the accident in which his son died. Here, the insured company for them were not insuring them with the money they should be having after the death.



By Defendant => Defendant, New Insurance Company, defends for not paying them the money by stating that the car was being driven by the driver who was not having a valid driving license or were driving in a careless manner and, hence, will not be compensating for the accidental death.



Judgement on the Case

The court observes that it is a case of composite negligence where injuries have been caused to the claimants by combined wrongful act of joint tortfeasors. In a case of accident caused by negligence of joint tortfeasors, all the persons who aid or counsel or direct or join in committal of a wrongful act, are liable. In such case, the liability is always joint and several. The extent of negligence of joint tortfeasors in such a case is immaterial for satisfaction of the claim of the plaintiff/claimant and need not be determined by the court.

The Supreme Court held that the insurance company was not entitled to reject the claim. The Court held that the driving license is not a condition precedent to the policy and the violation of the Motor Vehicles Act was not relevant in this case. The Court held that the policy was a contract of indemnity and the purpose of the policy was to provide financial security to the insured in case of death by accidental means. The Court further held that the policy did not stipulate that the driver must hold a valid driving license.

A reference was made to a Full Bench of Madhya Pradesh High Court in Smt. Sushila Bhadoriya & Ors. v. M.P. State Road Transport Corpn. & Anr. Has also laid down that in case of composite negligence, the liability is joint and several and it is open to implead the driver, owner and the insurer one of the vehicles to recover the whole amount from one of the joint tortfeasors.



Analysis and Conclusion

Analysis: -


· Khenyei v. New India Assurance Co. Ltd. (2005) was a landmark case in Indian insurance law, which dealt with the liability of insurance companies for road accidents.
· Based on these observations, the Supreme Court held that the insurance company was liable to compensate the petitioner for the losses suffered as a result of the road accident.
· Owner, driver and insurer of one of the vehicles can be sued and it is not necessary to sue owner, driver and insurer of both the vehicles. Claimant may implead the owner, driver and insurer of both the vehicles or anyone of them.

Conclusion: -

In conclusion, Khenyei v. New India Assurance Co. Ltd. established that insurance companies are liable to compensate victims of road accidents caused by third-party insured drivers, regardless of whether the driver was at fault or not. This case clarified the extent of liability of insurance companies in such cases and established the principle of immediate compensation for victims of road accidents. The court noted that the purpose of compulsory third-party liability insurance is to provide immediate compensation to the victims of road accidents, without the need to determine fault. This observation established the principle of immediate compensation for victims of road accidents and clarified the extent of liability of insurance companies in such cases.