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The Punjab and Haryana High Court has ruled that insurance companies are not liable to make compensation in cases wherein the accident is staged. This rule also applies in cases wherein an uninsured vehicle involved in an accident is replaced by an insured vehicle, The Times of India has reported.
“The insurance company is not made liable for the payment of compensation even in cases where the accident has been either staged or the insured vehicle has been replaced in the place of an uninsured vehicle actually involved in the accident or where the accident occurred due to a hit and run case and the offending vehicle cannot be found,” the news report quoting the order of Justice Anil Kshetarpal of the high court order as saying.
He was hearing a petition filed by a Union India Insurance Company.
Giving the background in the case, the news report said one Charandeep Singh and his friend Pargat Singh were travelling to Jagraon on a motorcycle on February 21, 2019. An SUV, rashly driven by one Jashandeep Singh” hit the motorcycle from behind. Pargat escaped with simple injuries, while Charandeep succumbed to head injuries.
The Motor Accident Claim Tribunal had ordered Union India Insurance Company to pay Rs 15,79,664 to the family of the deceased as compensation.
The insurance company challenged the tribunal award in the high court. The insurer proved the accident did not occur due to the negligence of the driver of the SUV. It was also argued in the court that a claim petition was filed in collusion with Jashandeep, who was driving the SUV.
The insurer argued that there was neither any evidence to prove that the SUV suffered any damage nor was there any evidence to prove that the bike was damaged, as claimed.
The court too did not find any evidence to the effect that the SUV was prosecuted for the alleged offence.
“There are a large number of unanswered questions …. Consequently, while accepting the appeal filed by the insurance company, the appeal filed by the claimants is dismissed,” observed the HC while setting aside the compensation awarded by the tribunal.