Fatal Accident met with JCB Excavator
We obtained finance from our Bank for purchase of one JCB Excavator from Kolkata. As per prevailing practice, Bank Authorities called Bajaj Alliance persons for taking taking Insurance before disbursement of payment.
Insurance Company came up with Proposal Form and we signed it mechanically. the Proposal form brought by the Insurance Company under the head Contractors Plant & Machinery Insurance Policy. though the machine was financed from Kolkata but operation of the machine was to be carried out at Dhanbad in Jharkhand State.
Upon taking delivery and arrival of the machine at site, we immediately applied for Registration of Excavator at Dhanbad based on the Insurance Policy and other related documents.
Unfortunately, a fatal accident took place with the machine and a case was lodged. Before removal of the dead body, a settlement of compensation was also done in the witness of concerned Police Officer of the jurisdiction.
Later on, we have been served Court Notice and the legal heirs of the deceased have demanded huge amount of compensation. When we took up the matter verbally with Insurance Company, they advised that 3rd Party Risk involved as per the policy is only 10% of the Equipment which is only Rs. 2,00,000/-. They also started educating us that Equipment under CPM Policy is to be operated within the site premises only. while taking Insurance, no such Guidance as given to us, nor we were explained the contents of the policy and other options were available for Insurance.
So far we have studied that if any equipment is registered under Motor Vehicle Act, the 3rd Party Insurance is fully covered. As mentioned above, valid Registration in already in our possasion and so called insurance policy is also valid.
As per motor vehicle Act, after registration the Equipment can be ply with n the state and 3rd Party Risk is fully covered as per Motor Vehicle Act. Had the Policy been issued by Insurance Company is not valid, how did we get Registration Certificate and Smart Card? We seek your valued professional advice and assistance in this crucial matter and we are ready t pay necessary Service Charges for the same also.
An early reply will be highly appreciated.
Thanks & Reards,
Pravin Parkeria
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