Authority: High Court of Judicature at Madras
Order Date: 28-07-2026
Case Overview
- Parties: Appellant – Cholamandalam MS General Insurance Co. Ltd.; Respondents – U. Durga (wife of deceased), U. Ashwin (minor son), U. Priyadharshan (minor son), P. Balaji (father of deceased).
- Claim: Under Section 166 of the Motor Vehicles Act, 1988, heirs sought Rs 15 lakhs personal accident cover after Mr. B. Uma Shankar, who borrowed a two‑wheeler from owner Mr. Karthik Murali Muralidharan, died in a road accident on 18‑09‑2021.
- Tribunal Findings: Awarded Rs 15 lakhs plus 7.5% interest, holding insurer liable despite borrower not being policyholder.
- Appellant’s Arguments: No privity of contract, personal accident cover limited to registered owner‑driver, claim petition not maintainable, owner not impleaded.
- Respondents’ Arguments: IMT‑15 permits cover for authorized driver/borrower; cited case law supporting extension.
- Court’s Reasoning: Policy terms and IMT‑15 restrict cover to the registered owner‑driver or his legal representative; borrower is a third party; extending cover would contravene policy intent; cited precedents not applicable.
Final Outcome
- The award dated 24‑07‑2024 is set aside.
- Interim stay ordered on 23‑10‑2025 CMP No. 25412 of 2025.
- Insurer directed to deposit Rs 7.5 lakhs with proportionate interest within four weeks; amount may be withdrawn with accrued interest.
- No costs awarded; the connected claim petition is closed.
Topics: Personal Accident Cover; Motor Vehicle Insurance