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2017 DIGILAW 187 (JK)

National Insurance Company Ltd. v. Union Of India

2017-04-10

RAMALINGAM SUDHAKAR

body2017
JUDGMENT : Ramalingam Sudhakar, J. It is a case of damage caused to the Vehicle owned by Union of India. Appeal is of the year 2011. 2. The Appellant-Insurance Company has filed the instant appeal thereby challenging the award dated 30.08.2011 passed by Motor Accident Claims Tribunal, Jammu. 3. The short issue that arises for consideration in the present appeal is as to what are the limits of liability of the Insurance Company. 4. Accident in this case happened on 06.08.2004. Vehicle of the Union of India, respondents herein, bearing registration No. 02D-148692NALS was hit by a private Bus bearing registration No. JK02G/3847, insured with the present appellant-Insurance Company, near village Guraha Pattan on Akhnoor-Jammu Highway. In that accident, Army Vehicle suffered serious damage. The Army pleaded for compensation before the Claims Tribunal, Jammu. 5. Owner of the private vehicle and the insurer were arrayed as respondents and the Tribunal awarded a sum of Rs. 8,54,058/- with interest @ 6% per annum from the date of institution of the petition till its realization, except for the period between May, 2007 to April, 2011. 6. Heard Mr. Sanjay K. Dhar, learned counsel for the appellant-Insurance Company and Mrs. Sindhu Sharma, learned Assistant Solicitor General of India for the Union of India. 7. Owner of the offending vehicle remained ex-parte before the Tribunal. Same address was shown in the Appeal but the notice issued to him could not be affected, meaning thereby that the owner is not interested to pursue the matter. No purpose will be served to adjourn this matter in the absence of the owner of the offending vehicle who remained ex-parte before the Tribunal. 8. The limits of liability of the Insurance Company as per the provisions of Insurance Policy is reproduced as under:- “Limits of Liability: Under Section-II(i) in respect of any one accident: As per Motor Vehicles Act 1988, under Section-II(ii) in respect of any one claim or series of claims arising out of one event: Rs. 75000.” 7. This is in terms of Tariff for Motor Trade (TMT) GR. 39. Third Party Property Damager (TPPD) Cover, which reads as follows: “GR. 39. 75000.” 7. This is in terms of Tariff for Motor Trade (TMT) GR. 39. Third Party Property Damager (TPPD) Cover, which reads as follows: “GR. 39. Third Party Property Damage (TPPD) Cover A. Limits of cover for Third Party Property Damage (other than for goods carried in the insured vehicle) under Liability Only Policies and under Section II-1 (ii) of various Package policies are as per the following table: (This provision shall not apply to vehicles ratable under Class G-Tariff for Motor Trade-Internal Risks) Class of Vehicles Tppd Cover (Rs.) 1. Commercial Vehicles (Excluding Three Wheelers, Taxis and motorized two wheelers ratable under Tariff for commercial vehicles) Rs. 7.50 Lakhs 2. Commercial Vehicles-Three Wheelers and Taxis 7.50 lakhs 3. Private Cars 7.50 lakhs 4. Motorized Two Wheelers-private and Commercial 1.00 lakh B. However, the insured can at the inception of the policy, opt to restrict to the TPPD cover to the statutory limit of Rs. 6000/- as provided in the M.V. Act. In such an event, the base TP premium applicable (before any loading/discount) may be reduced by Rs. 200/-, Rs. 150/-, Rs. 100/- and Rs. 50/- for Class 1, 2, 3 and 4 as above respectively.” 9. This aspect has not been considered by the Tribunal in the correct perspective. The said TMT is binding on the Insurance Company and the contract as well. 10. Accordingly, the Appellant-Insurance Company is liable to settle claim to the extent of Rs. 7.50 Lakhs only. 11. The appeal is allowed as above. 12. Union of India is entitled to withdraw Rs. 7.50 lakhs deposited by the Insurance Company. Appellant-Insurance Company is entitled to withdraw the excess amount. The excess amount can be recovered from the owner as per law. 13. Appeal is allowed to the extent as above.