Tyre Bursting Not An Act of God; Cannot Exonerate Insurance Company From Paying Compensation: Bombay High Court

A single judge bench of the Bombay High Court comprising Justice SG Dige has recently observed that merely stating that the burst of tyre is an act of god cannot exonerate the insurance company from paying compensation.

The high court was hearing an appeal filed by New India Assurance Company against the order of the Motor Vehicle Accident Tribunal, Pune.

The appellant company had contended that the concerned accident had occurred due to a burst of tyre of the offending vehicle, so there was no negligence on the part of the driver of the offending vehicle in the accident and that it was an act of God. It was also contended that the driver of the offending vehicle could not be considered liable for it.

The company had further argued that the salary of the deceased was considered on the higher side as it included various 'bhattas' which could not be considered part of the salary.

The counsel had further submitted that the consortium amount and amount under other heads were awarded on the higher side and the tribunal had awarded exorbitant and excessive compensation.

The respondents had argued that no witnesses were examined to prove the defense taken by the appellant and the tribunal had considered all aspects while awarding compensation, therefore, the judgment and order passed by the tribunal were legal and valid.

The high court referred to the dictionary meaning of "Act of God" which states “an instance of uncontrollable natural forces in operation”. Court said that it refers to a severe, unanticipated natural event for which no human is responsible.

The single judge bench further said that the driver should have checked the tyre and that it was human negligence.

“In my view, The bursting of tyre cannot be termed as an act of God. It is an act of human negligence. There are various reasons of bursting of tyre, i.e. High speed, under inflated or over inflated tyres, second hand tyres, temperature etc. The driver or owner of the vehicle has to check the condition of tyre before travelling, burst of tyre cannot be termed as natural Act, it is human negligence,” the court said. 

The high court said that merely stating that it is an act of god will not exonerate the insurance company. Court said,

“It is significant to note that the appellant has not examined the driver of offending car to prove, the reason of bursting of tyre. So mere stating that burst of tyre is "act of god" cannot be a ground to exonerate the appellant/insurance company from paying compensation. I do not find merit in the contention of the learned counsel for the appellant that there was no negligence of the driver of the car in the said accident.”

Accordingly, the bench disposed of the appeal while directing the respondent to pay an amount of Rs 12460960 along with interest.

Case Title: The New India Assurance Co. Ltd vs Smt. Mrunal Makarand Patwardhan & Ors