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Mallamma (deceased), through legal representatives v. National Insurance Co. Ltd. and others

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 1391 of 2009)Decided 7 Apr 2014
Civil Appeal No. 1391 of 2009
Chief Justice P. Sathasivam · Justice S.A. Bobde · Justice N.V. Ramana

Background

A tractor driver died when the vehicle overturned while he was working for its new owner. His family obtained compensation against the employer and insurer, but the High Court released the insurer because the policy remained in the former owner's name. The claimants relied on the proved transfer of ownership and statutory transfer of insurance benefits.

Decision Breakdown

The Supreme Court allowed the family's appeal and restored the Commissioner's award. Documents and the Commissioner's finding established that the tractor had already passed to the driver's employer before the accident. The existing policy expressly included liability for people employed in operating or loading the vehicle, supported by an additional premium. Section 157's deemed transfer therefore applied, and the old name on the insurer's records did not remove the insurer's liability. The compensation and interest obligations imposed by the Commissioner were restored.

Lesson Learnt

Where ownership transfer was proved and the policy covered the employee's risk, the insurer could not escape this claim merely because its records still named the previous owner.

Official source (sci.gov.in)View Judgment (PDF)

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