The Motor Accident Claims Tribunal (MACT) has ordered an insurance company to pay Rs 21 lakh compensation to the family members of a victim ruling that the firm “cannot escape liability by seeking benefit of its own wrong”.
In Pimpri, the court, presided over by D M Deshmukh, has directed the New India Assurance Company to pay the compensation to the wife, two children and parents of a 40-year-old transport businessman who lost his life in a road accident.
The insurer had argued that it was not legally responsible to pay compensation as the registered owner of the tanker was Mahesh R Sondekar and the tanker was covered by an insurance cover issued in the name of Sanjay.
“There is scope to mention that Mahesh might have sold the vehicle to Sanjay but due to some technical problem or omission on the part of Sanjay to file an application for change of name (in the registration certificate), the vehicle is still appearing in the name of Mahesh,” the tribunal said.
Further, the court said that the company cannot take benefits of its own wrong. In addition, once the company accepted the premium and issued policy, it is its duty to pay recompensation.