In Dhanraj v. New India Assurance Co. Ltd. and Anr.[ the Supreme Court considered a policy which covered “own damage” and held that under the policy of insurance in that case under the heading “own damage” words “premium on vehicle and non-electrical accessories” appear and on the terms and conditions of the said policy held that the premium that was paid was towards damage to vehicle and not for injury to the person of the owner. Thus, the expression “own damage” will have to be read along with the express terms and conditions of the insurance policy and if on a reading of the terms and conditions of the insurance policy, it is found that the premium that is paid for “own damage” covers only damage to the property of the insured and not to injury to the person of the owner or life of the owner, then obviously the insurer would not be liable for compensation for injury or death of the owner, but if on a reading of the terms and conditions of the insurance policy it is found that additional premium has been paid not only for damage to property but also for injury or death of the owner then the insurance company will also be liable for compensation for injury or death of the owner in addition to loss of property. Accordingly, we answer question No. (d), referred to us by the Division Bench of saying that it will ultimately depend upon the terms and conditions of the insurance policy and the premium or additional premium paid and the purpose for which premium or additional premium has been paid for coming to the conclusion whether “own damage” would cover damage to the person of the owner or will be confined to the properties of the vehicle owner.
