Insurer cannot be exonerated from its liability to compensate labourer for injuries suffered during loading, merely because it was not intimated of transfer of tractor-trailer by owner

Andhra Pradesh High Court held that a transfer of the vehicle without intimating the insurer or getting the policy transferred in favour of the transferee by itself is not a reason to clothe or shield the insurer from any action and in enforcing its liability. A contract of fidelity cannot get insulation of this nature.

The deceased was a labourer working for the employer who was then the owner of a tractor-trailer and that was insured with the insurance company. It is the case of claimants that the deceased along with others went on the above tractor as coolies to load the earth from the quarry and to unload in the lands of the employer. While they were working in the above quarry digging the earth and loading the same into the trailer, a big boulder, which got disturbed on account of digging, rolled down and fell on the back of the deceased causing several injuries resulting in his instantaneous death.

It appears that the tractor was sold by the owner to the transferee of the vehicle. The insurance policy reflected a contract of insurance between the transferee and the insurance company.

Once it is established that the accident occurred on account of employment and during as well as in the course of the same, the transferee of this vehicle also stands to the same liability as of the registered owner of this vehicle or in whose favour the policy of insurance stands. Merely because the insurer is not intimated of this transfer of the vehicle, it cannot be stated that the insurer gets exonerated from its liability nor it can avoid its liability on such score. The contract of insurance is specifically concerning the tractor-trailer in question. The policy subsisting in the name of the transferee also enures to the benefit of the owner of this vehicle.

Therefore, it was held that the insurer is liable along with the owner and transferee of the vehicle to satisfy the claim of claimants to the extent awarded by the Commissioner.