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2002 DIGILAW 824 (MP)

National Insurance Co. Ltd. v. Batasia

2002-08-29

S.SAMVATSAR

body2002
This appeal is filed by the Insurance Company under section 173 of the Motor Vehicles Act, 1998. The facts of the case are that the claimants are heirs of one Buddhi who was involved in accident held on 23.1.1989 with the bus MKH 7914. The said bus was insured with the present appellant. The only question urged before me is about the liability of the Insurance Company. The vehicle was insured by the policy D-l for the period starting from 7.1.1989. The present Motor Vehicles Act came into force from 1.7.1989. Thus, when the policy was issued the old Motor Vehicles Act was in force and the liability of the Insurance Company in respect of passengers was limited upto Rs. 15,000/- as per section 95(2)(b) of the Old Motor Vehicles Act, 1939. The contention of the learned counsel is that as per proviso to section 147 (2) of the New Act the limits of the old policy is to remain in force for a period of four months or the date of renewal of the policy whichever is earlier. Thus, in the present case the liability fixed under the Act of 1939 was to remain in force for a period of four months from the date of coming into force of New Act of 1988 which has come into force on 1.7.1989. The accident has occured during the said four months and, therefore, the liability of the Insurance Company' was limited to Rs. 15,000/- as per section 95(2) of the Old Act and the Claims Tribunal has erred in holding that the Insurance Company is liable to pay the entire amount of compensation which is Rs. 83,000/-. The question raised by the appellant is squarely answered by the Apex Court in its judgment in the case National Insurance Company Ltd. v. Behari Lal and others, 2000 AIR sew 3352, where it has been held that the proviso to sub-section 2 of section 147 of the New Act does not limit the liability of the Insurance Company to pay compensation to the extent specified in the policy of the Insurance in terms of section 95(2) and the liability of the Insurance Company to pay the amount as per section 147 starts immediately with the coming into force of the New Act. It is pertinent to point out that under section 147 of the New Act the liability of the Insurance Company is now unlimited. In view of the pronouncement of the Apex Court in the aforesaid judgment it is no doubt that the Insurance Company is liable to pay the amount of compensation as per section 147 immediately from the date of commencement of the New Act and the liability of the Insurance Company is not limited after 1.7.1989 as per section 95(2) of the old Act. Thus, this appeal has no force and is deserves to be dismissed. No other grounds were raised at the time of arguments. Thus, this appeal is dismissed with no orders as to costs. B.N. Malhotra for appellant; B.D. Verma and O.P. Mathur for respondents.