Third-party risks vis--vis own damage cases

United India Insurance Co. Ltd. v. Babu Ram Thakur, (2013) 11 SCC 424
Motor Vehicles
Motor Vehicles Act, 1988
Ss. 15, 147 and 149 - Third-party risks vis--vis own damage cases - Insurer immune from liability - Held, in such cases
insurer has to indemnify insured and may recover paid sum from insured, if advised - Considering peculiar facts of case,
insurer was directed not to recover paid amount from insured, 

IN THE SUPREME COURT OF INDIA

Civil Appeal No. 4055 of 2007

Decided On: 28.02.2012

Appellants: United India Insurance Company Ltd.
Vs.
Respondent: Babu Ram Thakur and Anr.

Hon'ble Judges/Coram:
Dalveer Bhandari and Dipak Misra, JJ.

1. Heard the Learned Counsel for the Appellant.

2. This appeal is directed against the judgment and order dated 19th April, 2006 passed by the National Consumer Disputes Redressal Commission, New Delhi in First Appeal No. 206 of 1997.

3. Learned Counsel appearing for the Appellant submits that this case is covered by a decision of this Court in National Insurance Company Ltd. v. Laxmi Narain Dhut MANU/SC/1233/2007 : (2007) 3 SCC 700. Learned Counsel for the Appellant has relied upon paragraphs 36 to 38 of that judgment where it is mentioned that the decision in National Insurance Company Ltd. v. Swaran Singh and Ors. MANU/SC/0021/2004 : (2004) 3 SCC 297, has no application to cases other than third-party risks. It is further mentioned therein that in case of third-party risks the insurer has to indemnify the amount, and if so advised, to recover the same from the insured.

4. In view of the judgment of this Court in the case of Laxmi Narain Dhut (supra), this appeal is allowed. However, in the peculiar facts and circumstances of this case, we direct that whatever amount has been paid to the Respondents by the Appellant, shall not be recovered from them.

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