SC: For requisitioned vehicles, govt to pay 3rd party damages | India News
New Delhi: Supreme Court Said that if a private car met with an accident sought by a district administration, the liability would be on the government and not the insurance company to pay the compensation.A bench of Justices Sanjay Karol and NK Singh said, “Where a vehicle is requisitioned for public work and an incident occurs during the period of such requisition, the liability should properly be borne by the requisitioning authority, and not by the insurer appointed by the owner for regular and voluntary use of the vehicle.”A bus owned by Kidji Corner School in Gwalior was requested by the district administration for the village panchayat elections. During this period, it hit and killed a motorcyclist in January 2010. Motor Accident Claims Tribunal awarded compensation of Rs 5.1 lakh with 6% interest. In 2024, the SC increased the compensation to Rs 27 lakh.Rejecting the district administration’s plea that the liability on the civic authority would send a wrong signal, a bench of Justices Sanjay Karol and NK Singh said that when the government requisitions a private vehicle, its owner is removed from custody.While writing the judgement, 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, the responsibility properly lies with the requisitioning authority and not with the insurer appointed by the owner.”The SC said, “Compulsory deployment for public functions cannot reasonably be characterized as ‘regular use’… binding liability on the insurer… would extend beyond the risk the contract agreed to cover.”
