NEW DELHI: Supreme Court has said that if a private vehicle requisitioned by a district administration meets with an accident, then liability would be fastened on govt and not the insurance company for payment of compensation.A bench of Justices Sanjay Karol and N K Singh said, “Where a vehicle is requisitioned for public functions and an incident occurs during the period of such requisition, liability ought properly to be borne by the requisitioning authority, and not by the insurer engaged by the owner for the vehicle’s regular and voluntary use.”A bus owned by Kidzee Corner School in Gwalior was requisitioned by the district administration for gram panchayat elections.
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During this period, it hit a motorcyclist causing his death in Jan 2010. The Motor Accident Claims Tribunal awarded compensation of Rs 5.1 lakh with 6% interest. SC in 2024 had enhanced the compensation to Rs 27 lakh.Rejecting the district administration’s plea that fastening liability on civic authorities would send a wrong signal, a bench of Justices Sanjay Karol and N K Singh said when govt requisitions a private vehicle, its owner is divested of custody. Writing the judgment, Justice Karol said, “During this period, the owner neither directs its use nor derives any benefit from it. It only stands to reason that in such circumstances, if an untoward incident occurs, responsibility would properly rest with the requisitioning authority and not with the insurer engaged by the owner.”SC said, “Compelled deployment for public functions cannot reasonably be characterised as ‘regular use’… To fasten liability upon the insurer… would be to extend the contract beyond the risk that was agreed to be covered.”
