Text

ICICI Lombard General Insurance Company Ltd v. Smt. Arti Devi and Others (2016)

---

Facts
On 19 th October, 2009 at around 10:50 PM, Zile Singh was transporting commodities on his
cycle cart close to Shiv Mandir, Village Hamidpur, Delhi. A truck (HR 38J 5989) coming at high
speed knocked him down and inflicted injuries that proved to be fatal.
Singh’s dependents—children, widow, and elderly mother—went to the court under Sections 166
and 140 of the Motor Vehicles Act, 1988, seeking compensation.
The truck was insured with ICICI Lombard General Insurance Company Ltd, and it denied its
liability on various grounds.

Issues:
Was the compensation paid under non-pecuniary heads higher than it ought to have been?
Was the driver in possession of a valid driving license, or was there any breach of the conditions
of the insurance policy?
Was the interest charge levied on the compensation fair?

Arguments of Both Sides:
Arguments put forth by ICICI Lombard General Insurance Company Ltd (Appellant):
Excessive Compensation: The insurance company contended that the non-pecuniary damages
awarded by the court—i.e., loss of estate, loss of love and affection, and funeral expense—were
exorbitantly high.
License Issue: They argued that the driver did not possess a valid driving license at the time of
the accident, hence violating the terms of the insurance policy.
Rate of Interest: The insurer argued that the rate of interest on the compensation was
unreasonable and needed to be re-appraised.

Arguments by Arti Devi & Others (Respondents – Claimants):

Loss of Dependency: The breadwinner of the family was the deceased, and the compensation
paid was essential to their survival.
No Breach of Policy: The claimants asserted that the truck owner was responsible for confirming
that the driver had a valid license. The claimants averred that an insurer should establish a breach
in policy prior to denying liability.
Justified Rate of Interest: They presented that the charged interest on the awarded amount was
reasonable, with consideration of inflation and financial adversity.

Held:
Cut Back Non-Pecuniary Damages: The Delhi High Court ruled that the Tribunal had awarded
excessive amounts in non-pecuniary damages. The “loss of love and affection” amount was
trimmed down.
Insurer’s Liability Not Waived: The Court held that the insurance company could not be
discharged of liability on technical grounds of the driver’s license irregularity without concrete
evidence of policy breach.
Interest Rate Fixed: The Court also kept the interest rate on the compensation, finding it
reasonable and fair.

---

Detail Information

Title

ICICI Lombard General Insurance Company Ltd v. Smt. Arti Devi and Others (2016)

Court

: .,

Lenght/Sections/Order/Rules

-

Language

English

Case Number/Citation

MAC.APP. No. 1159 of 2012

Matter(s)

-

Councels

Appellant Through Advocate for ICICI Lombard General Insurance Company Ltd Respondent Through Advocate for Arti Devi & Others

Statement of Responsibility

Sneha Awasthi, Chhatrapati Shahu Ji Maharaj University, Kanpur

See Also

File Attachment

Comments

---

You must be logged in to post a comment