SUSHILABEN INDRAVADAN GANDHI Vs. NEW INDIA ASSURANCE COMPANY LIMITED
LAWS(SC)-2020-4-3
SUPREME COURT OF INDIA
Decided on April 15,2020

Sushilaben Indravadan Gandhi Appellant
VERSUS
NEW INDIA ASSURANCE COMPANY LIMITED Respondents


Referred Judgements :-

DHARANGADHARA CHEMICAL WORKS LTD. VS. STATE OF SAURASHTRA [REFERRED TO]
BIRDHICHAND SHARMA VS. FIRST CIVIL JUDGE [REFERRED TO]
SHANKAR BALAJI WAJE VS. STATE OF MAHARASHTRA [REFERRED TO]
ARGENT VS. MINISTER OF SOCIAL SECURITY AND ANOTHER [REFERRED TO]
EBRAHIM ABOOBAKAR VS. CUSTODIAN GENERAL OF EVACUEE PROPERTY NEW DELHI [REFERRED TO]
CHINTAMAN RAO VS. STATE OF MADHYA PRADESH [REFERRED TO]
MANAGEMENT OF D G DEWAN MOHIDEEN SAHIB AND SONS IN C A NO 721 OF 63 JANAB S AHMED HUSSAIN AND SONS IN C A NO 791 OF 63 VS. SECRETARY UNITED BEEDI WORKERS UNION SALEM IN BOTH THE APPEALS :SECRETARY UNITED BEEDI WORKERS UNION SALEM IN BOTH THE APPEALS [REFERRED TO]
GENERAL ASSURANCE SOCIETY LIMITED VS. CHANDMULL JAIN [REFERRED TO]
GENERAL ASSURANCE SOCIETY LIMITED VS. CHANDMULL JAIN [REFERRED TO]
SILVER JUBILEE TAILORING HOUSE VS. CHIEF INSPECTOR OF SHOPS AND ESTABLISHMENTS [REFERRED TO]
HUSSAINBHAI CALICUT VS. ALATH FACTORY THEZHILALI UNION KOZHIKODE [REFERRED TO]
SHINING TAILORS VS. INDUSTRIAL TRIBUNAL II U P LUCKNOW [REFERRED TO]
P M PATEL AND SONS VS. UNION OF INDIA [REFERRED TO]
ORIENTAL INSURANCE COMPANY LIMITED VS. SONY CHERIYAN [REFERRED TO]
INDIAN BANKS ASSOCIATION VS. WORKMEN OF SYNDICATE BANK [REFERRED TO]
UNITED INDIA INSURANCE CO LTD VS. PUSHPALAYA PRINTERS [REFERRED TO]
POLYMAT INDIA P LTD VS. NATIONAL INSURANCE CO LTD [REFERRED TO]
GENERAL MANAGER INDIAN OVERSEASE BANK VS. WORKMEN ALL INDIA OVERSEAS BANK EMPLOYEES UNION [REFERRED TO]
SARLA VERMA VS. DELHI TRANSPORT CORPORATION [REFERRED TO]
SUMITOMO HE AVY INDUSTRIES LIMITED VS. OIL AND NATURAL GAS COMMISSION OF INDIA [REFERRED TO]
RASHTRIYA ISPAT NIGAM LTD VS. DEWAN CHAND RAM SARAN [REFERRED TO]
NATIONAL INSURANCE COMPANY LTD VS. BALAKRISHNAN [REFERRED TO]
EXPORT CREDIT GUARANTEE CORPN VS. M/S GARG SONS INTERNATIONAL [REFERRED TO]
BHS INDUSTRIES VS. EXPORT CREDIT GUARANTEE CORP [REFERRED TO]
UNITED INDIA INSURANCE CO. LTD. VS. M/S ORIENT TREASURES PVT. LTD. [REFERRED TO]
M/S. INDUSTRIAL PROMOTION & INVESTMENT CORPORATION OF ORISSA LTD. VS. NEW INDIA ASSURANCE COMPANY LTD. & ANR. [REFERRED TO]



Cited Judgements :-

KIRANBHAI AMRITLAL DESAI VS. INDIAN INSTITUTE OF MANAGEMENT [LAWS(GJH)-2021-4-218] [REFERRED TO]
MANMOHAN NANDA VS. UNITED INDIA ASSURANCE CO. LTD [LAWS(SC)-2021-12-15] [REFERRED TO]
HARIS MARINE PRODUCTS VS. EXPORT CREDIT GUARANTEE CORPORATION [LAWS(SC)-2022-4-76] [REFERRED TO]
C.C. C.E. AND S.T. BANGALORE (ADJUDICATION) VS. NORTHERN OPERATING SYSTEMS PVT. LTD [LAWS(SC)-2022-5-83] [REFERRED TO]


JUDGEMENT

R.F.NARIMAN,J. - (1.)Leave granted.
(2.)On 09.06.1997, the husband of the Appellant No.1, who was a surgeon, was travelling in a mini-bus that was owned by the Rotary Eye Institute, Navsari (the Respondent No. 3 herein) along with other medical staff of the said Institute. The mini-bus had been driven with excessive speed, as a result of which at around 8.30 P.M. when the mini-bus was passing through the Gandevi-Navsari Road, near Kabhar Patiya, the driver of the mini-bus lost control and the vehicle turned turtle. The husband of Appellant No.1 was seriously injured and ultimately succumbed to his injuries.
(3.)On 17.04.1997, the Respondent No. 3 had entered into a comprehensive Private Car 'B' Policy from the New India Assurance Company Limited (the Respondent No. 1 herein). The aforesaid Insurance Policy was valid from 24.04.1997 till 20.04.1998. The limitation of liability clause which has been relied upon by the impugned judgment of the High Court is set out as follows:
"SECTION II LIABILITY T THIRD PARTIES

1. Subject to the limits of liability as laid down in the Schedule hereto the Company will indemnify the insured in the event of an accident caused by or arising out of the use Motor Car against all sums including claimant's costs and expenses which the insured shall become legally liable to pay in respect of

(a) death of or bodily injury to any person including occupants carried in the motor car (provided such occupants are not carried for hire or reward) but except so far as it is necessary to meet the requirements of Motor Vehicles Act, the Company shall not be liable where such death or injury arises out of and in the course of the employment of such person by the insured."

In addition, endorsement IMT-5 states:

"I.M.T.5. Personal Accidental cover to unnamed passengers other than the insured and his paid driver or cleaner.

In consideration of the payment of an additional premium it is hereby understood and agreed that the Company undertakes to pay compensation on the scale provided below for bodily injury as hereinafter defined sustained by any passenger other than the insured and/or his paid driver attendant or cleaner and/or a person in the employ of the insured coming within the scope of the Workman Compensation Act, 1923 and subsequent amendments of the said Act and engaged in and upon the service of the insured at the time such injury is sustained whilst mounting into dismounting from or travelling in but not driving the motor car and caused by violent accidental external and visible means which independently of any other cause shall within three calendar months of the occurrence of such injury result in:
15.jpg There is no dispute that additional premium was paid for endorsement IMT-5, which will therefore be applicable in the facts of this case. It is also undisputed that endorsement IMT-16, which deals with a general liability to employees of the insured who may be travelling in the employer's car, other than paid drivers, may also be covered on payment of an additional premium. It is undisputed on the facts of this case that as far as endorsement IMT-16 is concerned, no such additional premium was paid.
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