Law: West Pakistan Motor Vehicles Ordinance, (XIX of 1965)

Section: 2(24)(b)

Law: Motor Vehicles Act (IV of 1939)

Section: 95, 96

Law: Fatal Accidents Act, 1855

Section: 1

(a) West Pakistan Motor Vehicles Ordinance (XIX of 1965) S. 2(24)(b)-Motor accident-Vehicle in possession of hire purchaser at time of accident resulting in death of plaintiff's husband-Driver, under terms of agreement, employee of hire purchaser - Neither original owner nor its department, held, even vicariously liable for negligent act of driver. Abdul Rahman v. Roquea Qadir and others P L D 1961 Dacca 410; Hussain and another v. Mohammad Rafiq and 4 others P L D 1971 Kar. 129; Daniels v. Vaux (1938) 2 K B 203 and France v. Parkinson (1954) 1 A E L R 739 ref. (b) Motor Vehicles Act (IV of 1939) Ss. 95 & 96 - Motor accident - Damages, suit for - Liability of Insurer-Hire purchase-Vehicle lent on hire purchase agreement, possession given to purchaser, but insurance policy standing in name of original owner and Insurance Company not informed of transfer to purchaser-Insurance Company, held, not liable for damages in respect of death caused to plaintiff's husband by negligent act of hire purchaser's driver-Consent of Insurance Company, held, essential in case of transfer of vehicle alongwith insurance policy for making insurer liable under policy-[Messrs Pak. Insurance Co. Ltd. v: Mst. Bashir Bagum alias Farzana and others P L D 1966 Kar. 15 2 and Madras Motor Insurance Company v. Muhammad Mustafa A I R 1961 Mad. 208 held overruled]. The insurance policy is said to have been handed over to hire purchaser but it continued to remain in the name of original owner and even the insurance company had not been informed of the transfer of the vehicle to hire purchaser. It has been held that where A after getting his bus insured transferred the bus to 'B' subsequently but the Policy of insurance had not been transferred in the name of B, the insurance company could not be held liable to pay damages to B in case of an accident. Thus where a car is transferred alongwith the policy the transfer must be consented to by the insurance company. After the assent there will be a novation of the contract and the liability in respect of the transferee would be accepted by the insurance company. Section 96(1), Motor Vehicles Act, 1939 which limits the defences…