Summary
The Supreme Court upheld the finding that insurance did not cover an injured passenger travelling on a tractor insured for agricultural use, with no insured or attached trailer established. Nevertheless, it directed the insurer to pay the claimant first and recover the amount from the tractor owner. The award of Rs 9,02,324 with 8% interest was left undisturbed, including the concurrent assessment of 60% whole-body disability.
Issues
- Whether the insurer was liable for a passenger travelling on the tractor in breach of the policy.
- Whether the insurer should first pay and recover from the owner, and whether compensation should be enhanced.
Held
- The evidence showed that the claimant travelled on the tractor itself, which accommodated only its driver. Neither an attached trailer nor insurance for one was established. The finding that this breached the agricultural-use policy, excluding indemnity liability, was upheld on these facts. (¶¶ 6, 8–9)
- Despite the absence of policy liability, the insurer should have been directed to pay the claimant first, with liberty to recover from the tractor owner in accordance with law. The High Court should therefore have allowed the insurer’s appeal only partly. (¶¶ 10, 13)
- The Tribunal had considered the relevant compensation heads and awarded just compensation. Its assessment of 60% whole-body disability was a possible view supported by the medical evidence and concurrently affirmed; the claim for 67% disability and enhanced compensation was rejected. (¶¶ 5, 11–12)
Result
Appeals partly allowed: insurer directed to pay the existing award first, with liberty to recover from the tractor owner. Enhancement refused; no costs.