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2003 DIGILAW 665 (MP)

UNITED INDIA INSURANCE CO. LTD. v. JHANJHAN

2003-05-06

CHANDRESH BHUSHAN, S.S.JHA

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S. S. JHA, J. ( 1 ) THIS order shall also Ltd. v. Hakim Kaur ). govern the disposal of Misc. Appeal No. 138 of 1993 (United India Insurance Co. ( 2 ) THIS appeal is filed by the insurance company praying that insurance company should be held liable for payment of compensation to the extent of Rs. 1,50,000 as under the policy liability of insurance company is limited. ( 3 ) ON 9. 7. 1989 both the deceased were travelling on a motor cycle bearing registration No. RRA 8602 collided with a truck bearing registration No. MBW 1809 which resulted into death of Bakilsingh s/o Pat-riya and Siyaram s/o Karodi. The legal representatives of both the deceased had filed claim petitions in the court of Motor accidents Claims Tribunal, Morena. The claim petition filed by the heirs of Bakilsingh was registered as Claim Petition No. 55 of 1989 and the claim petition filed by the heirs of Siyaram was registered as claim Petition No. 56 of 1989. Common award is passed in both the cases. ( 4 ) COUNSEL for the insurance company fairly conceded that since he has not sought permission under section 170 of the Motor vehicles Act, therefore, he is confining his argument only on the question of limited liability of the insurance company. He submitted that he is not challenging the quantum of compensation and the finding regarding negligence of the driver. Counsel for appellant invited attention to provisions of section 147 of the Motor Vehicles Act, 1988. Sub-section (5) of section 147 is reproduced below:" (5) Notwithstanding anything contained in any law for the time being in force, an insurer issuing a policy of insurance under this section shall be liable to indemnify the person or classes of persons specified in the policy in respect of any liability which the policy purports to cover in the case of that person or those classes of persons. "this section provides that an insurer issuing a policy of insurance shall be liable to indemnify the person or classes of persons specified in the policy in respect of any liability which the policy purports to cover in the case of that person or those classes of persons. "this section provides that an insurer issuing a policy of insurance shall be liable to indemnify the person or classes of persons specified in the policy in respect of any liability which the policy purports to cover in the case of that person or those classes of persons. Proviso to sub-section (2) of section 147 provides that the policy of insurance shall cover any liability incurred in respect of any accident, up to the following limits, namely:" (A) save as provided in clause (b), the amount of liability incurred; (B) in respect of damage to any property of a third party, a limit of rupees six thousand: provided that any policy of insurance issued with any limited liability and in force, immediately before the commencement of this Act, shall continue to be effective for a period of four months after such commencement or till the date of expiry of such policy whichever is earlier. "in the present case the policy was issued under the Motor Vehicles Act, 1939 and the policy is Exh. P-14 on record. In the policy the limited liability of the insurance company under section 95 of the motor Vehicles Act, 1939 is Rs. 1,50,000 per person. The accident has occurred on 9. 7. 1989 and new Motor Vehicles Act came into force on 1. 7. 1989. It may be mentioned here that in the judgment date of accident is wrongly typed as 9. 6. 1989 whereas in the claimpetition date of accident is mentioned asesses have also deposed that the date of accident was 9. 7. 1989, therefore, policy which was issued under the old Act was in force on the date of accident and considering the policy issued under section 95 of the old Act liability of the insurance company is limited to rs. 1,50,000 per person. Therefore, the award of the Claims Tribunal is modified to the extent that insurance company shall be liable to indemnify compensation to the tune of Rs. 1,50,000 per deceased. The remaining compensation shall be paid by the owner and the driver of the vehicle. ( 5 ) SINCE the quantum of compensation has not been disputed, therefore, we affirm the quantum of compensation determined by the Claims Tribunal but with a limited liability of the insurance company to the tune of Rs. 1,50,000. 1,50,000 per deceased. The remaining compensation shall be paid by the owner and the driver of the vehicle. ( 5 ) SINCE the quantum of compensation has not been disputed, therefore, we affirm the quantum of compensation determined by the Claims Tribunal but with a limited liability of the insurance company to the tune of Rs. 1,50,000. The insurance company shall also bear interest on its liability as determined by the Claims Tribunal. Counsel for appellant submitted that they have deposited Rs. 1,00,000 in the Claims tribunal. The said amount is kept in the fixed deposit. The interest shall be adjusted on the periodical compensation deposited from time to time in accordance with law. Both the appeals succeed in part and are disposed of. There shall be no orders as to costs. Appeals allowed. .