British India General Insurance Co. Ltd. v. Captain Itbar Singh and Ors. - (Supreme Court) (11 May 1959)

Insurers cannot be excluded from proceedings on non-statutory grounds

MANU/SC/0148/1959

Motor Vehicles

In 1959 the Supreme Court answered the question – can a motor vehicle insurer escape being arrayed as a defendant on grounds not mentioned in statute – in the negative. Noting the inability of an insurer to not recover anything from the assured as “bad luck”, the Court was curt in its deliberations. “the loss had to fall on some one and the statute has thought fit that it shall be borne by the insurer”. It refused to read into Section 96 of the Motor Vehicles Act, 1939 additional exceptions that would allow an insurer to escape responsibility. Perhaps more notable was the tort-esque reasoning of the court about the loss befalling one who had no hand in causing it.

Note: The laws are old, dark and potholed; drive with your headlights on.

Relevant : Sarupsing Mangatsing vs. Nilkant Bhaskar MANU/MH/0079/1953 Royal Insurance Co. Ltd. vs. Abdul Mahomed Meheralli MANU/MH/0068/1955

Tags : MOTOR VEHICLES ACT 1939 INSURER EXCLUSION