Motor Vehicles Act : Obligation of Insurance Company

Motor Vehicles Act, Sections 2 (13) and 166 

Obligation of insurance company to indemnify the insured 

Fatal accident 

Insurance Company contended that another motor-cycle which is vehicle involved in the accident was a stolen vehicle prior to accident and therefore it is not vicariously liable.

Held, though the motorcycle involved in the accident was the stolen vehicle, the R.C. book shows the name of the original owner and it is insured with the Insurance Company. 

Therefore, an Insurance Company cannot escape from the obligation to indemnify the insured. 

[Paras 11 to 15]

Tokio General In Com vs Kanchanben 

FA 472/14 19/06/19 

[ RM.CHAYA JJ ]

[ GUJARAT HIGH COURT ]