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Madhya Pradesh High Court · body

1992 DIGILAW 163 (MP)

Oriental Insurance Co. Ltd. v. Munnidevi

1992-03-17

T.N.SINGH

body1992
JUDGMENT It is Insurer's appeal and the only contention pressed is that in terms of statutory provisions and also the provisions of the Insurance policy, appellants liability be reduced to Rs. 50,000/- Although an award in the sum of Rs. 70,000/is passed, taking the view that Insurer's statutory limit of liability is Rs. 75,000/-, the entire liability under the award is saddled on the appellant. The accident took place on 20.4.1985 and it cannot be disputed that on the date, in terms of the statutory provisions of section 95 (2) (b) (II), M.V. Act, 1939, for each passenger carried for hire or reward in the vehicle involved in the accident, the Insurer's liability was limited to Rs. 15,000/-. However, as per sub-section (5) of section 95 in terms of the policy of Insurance, higher amount is claimable and, therefore, we are required to look at the policy filed by the Insurer in the Court below. That we have perused. It is true, additional premium for 50 passengers at the rate of Rs. 20/- is charged and it is indeed for this reason that a higher contractual liability is undertaken by the Insurer committing to pay Rs. 50,000/- in respect of anyone claim or series of claims arising out of one accident. We do not see any substance in the contention of Shri Verma that because additional premium was paid, the liability should be deemed unlimited. On the other hand, what appears to us clear is that additional premium was charged for undertaking additional liability over the statutory limit. For the short reason aforesaid, we have no doubt that the impugned award warrants modification and that is made. The award is maintained, but the limit of the Insurer/appellant is varied. The appellant shall discharge liability under the impugned award to the extent of Rs. 50,000/- only. Admittedly, deceased was travelling in the bus insured with the appellant. It is submitted by Shri Bansal that pursuant to the interim order passed in this matter by this Court, the Insurer has discharged its liability under the award and, therefore, a refund is to be ordered. That matter is left to be disposed of by the Tribunal. Indeed, due compliance of the direction herein made shall be ensured by the Tribunal and if to any refund the appellant is entitled, that shall be made. Appeal allowed.