1998 JTR(SC) 687
1999 AIR(SCW) 2554 ; 1999 1 AllCJ 765 ; 1999 4 CivLJ 90 ; 2002 1 JCR(SC) 383 ; 2002 2 JLJR(SC) 25 ; 2002 1 MPLJ 578 ; 1999 2 SCC 47 ; 1999 KHC 3912
SUPREME COURT OF INDIA
A. P. Misra, G. B. Pattanaik
NEW INDIA ASSURANCE CO., APPELLANT
Versus
C. M. JAYA AND OTHERS, RESPONDENTS.
Civil Appeals Nos. 4566-4567 of 1996,
decided on July 23, 1998.
The main legal point established is the need to resolve the conflict in the interpretations of the liability of the insurer in cases of insurance policies not taking higher liability by accepting a higher premium.
Act Referred :MOTOR VEHICLES ACT : S.95(2)
Insurance Policy - Liability of Insurer - Conflict in Interpretation
Fact of the Case:
The court addressed the question of whether an insurer, in a case of an insurance policy not taking any higher liability by accepting a higher premium, would be liable to the extent limited under Section 95(2) or would be liable to pay the entire amount and recover from the insured.
Finding of the Court:
The court found an apparent conflict in two three-Judge Bench decisions and decided to refer the matter to the Chief Justice of India to constitute a larger Bench for resolving the conflict.
Issues: The main issue was the conflicting interpretations of the liability of the insurer in cases of insurance policies not taking higher liability by accepting a higher premium.
Ratio Decidendi: The court decided to refer the matter to a larger Bench for resolving the conflict in the interpretations of the liability of the insurer.
Final Decision: The court directed the records of the case to be placed before the Chief Justice of India to constitute a larger Bench for resolving the conflict.
Insurance Policy - Liability of Insurer - Conflict in Interpretation
Fact of the Case:
The court addressed the question of whether an insurer, in a case of an insurance policy not taking any higher liability by accepting a higher premium, would be liable to the extent limited under Section 95(2) or would be liable to pay the entire amount and recover from the insured.
Finding of the Court:
The court found an apparent conflict in two three-Judge Bench decisions and decided to refer the matter to the Chief Justice of India to constitute a larger Bench for resolving the conflict.
Issues: The main issue was the conflicting interpretations of the liability of the insurer in cases of insurance policies not taking higher liability by accepting a higher premium.
Ratio Decidendi: The court decided to refer the matter to a larger Bench for resolving the conflict in the interpretations of the liability of the insurer.
Final Decision: The court directed the records of the case to be placed before the Chief Justice of India to constitute a larger Bench for resolving the conflict.
ORDER
1. The question involved in these appeals is whether in a case of insurance policy not taking any higher liability by accepting a higher premium, in case of payment of compensation to a third party, the insurer would be liable to the extent limited under Section 95(2) or the insurer would be liable to pay the entire amount and he may ultimately recover from the insured. On this question, there appears to be some apparent conflict in the two three-Judge Bench decisions of this Court - (1) New India Assurance Co. Ltd. v. Shanti Bai ((1995) 2 SCC 539) and (2) Amrit Lal Sood v. Kaushalya Devi Thapar ((1998) 3 SCC 744).
2. In the latter decision, unfortunately the decision in New India Assurance case ((1995) 2 SCC 539) has not been noticed though reference has been made to the decision of this Court in National Insurance Co. Ltd. v. Jugal Kishore ((1988) 1 SCC 626 : 1988 SCC (Cri) 222) which was relied upon in the earlier three-Judge Bench judgment. In view of the apparent conflict in these two three-Judge Bench decisions, we think it appropriate that the records of this case may be placed before my Lord, the Chief Justice of India to constitute a larger Bench for resolving the conflict. We accordingly so direct. The record may now be placed before the Honble Chief Justice of India.
Court Masters