The New India Assurance Co. Ltd. Vs. Sri Ramlal & Others.
EmailAppeal: Civil Appeal No. 4231 of 1986.
Petitioner: The New India Assurance Co. Ltd.
Respondent: Sri Ramlal & Others.
Apeal: Civil Appeal No. 4231 of 1986.
Judges: E.S.VENKATARAMIAH & K.N.SINGH, JJ.
Date of Judgment: Oct 16, 1987
Appearances:
Mr. O.P. Sharma, Senior Advocate for the Respondents.
Mr. Pramod Dayal, Advocate for the Petitioner.
Mr. Pramod Dayal, Advocate for the Petitioner.
Head Note:
MOTOR VEHICLES ACT, 1939:
Section 95(2) (a) – Liability of the insurer – As per insurance policy the insurance cover was only upto Rs. 50,000/- Appellant not liable for the entire amount of compensation.
Cases Reffered:
Motor Owners Insurance Co. Ltd. v. Jadavji Keshavji Modi & Ors., (1982) 1 SCR 560.
JUDGEMENT:
O R D E R
It is obvious from the Sec.95(2)(a) of the Motor Vehicles Act 1939 that the maximum liability of the Appellant is Rs.50,000/- under the said Act in respect of each death or injury caused by motor vehicles accident falling under that provision (See Motor Owners Insurance Co.Ltd. v. Jadavji Keshavji Modi and others (1982) 1 SCR 560). The insurance policy produced by the appellant shows that the appellant had undertaken to indemnify the insured to the extent of Rs.50,000/- only. In the circumstances the High Court was in error in holding that the appellant was liable to pay the entire amount of compensation which was more than Rs.50,000/- in the case on the basis that the policy was one under which the insurer had undertaken to bear an unlimited liability. The order passed by the High Court is, therefore, modified in so far as the appellant to pay a sum of Rs.50,000/- Only to the claimants-respondents with interest at the rate of 12% per annum from the date of filing of the petition to the date of deposit. The appellant shall also pay the cost of the said claimants before the Motor Accidents Tribunal. The appeal is accordingly allowed. There will be no order as to costs in this Court. Any compensation payable over and above Rs.50,000/- shall be paid by respondent No.1, Mr. Ram Lal (owner of the vehicle).
Appeal allowed.
It is obvious from the Sec.95(2)(a) of the Motor Vehicles Act 1939 that the maximum liability of the Appellant is Rs.50,000/- under the said Act in respect of each death or injury caused by motor vehicles accident falling under that provision (See Motor Owners Insurance Co.Ltd. v. Jadavji Keshavji Modi and others (1982) 1 SCR 560). The insurance policy produced by the appellant shows that the appellant had undertaken to indemnify the insured to the extent of Rs.50,000/- only. In the circumstances the High Court was in error in holding that the appellant was liable to pay the entire amount of compensation which was more than Rs.50,000/- in the case on the basis that the policy was one under which the insurer had undertaken to bear an unlimited liability. The order passed by the High Court is, therefore, modified in so far as the appellant to pay a sum of Rs.50,000/- Only to the claimants-respondents with interest at the rate of 12% per annum from the date of filing of the petition to the date of deposit. The appellant shall also pay the cost of the said claimants before the Motor Accidents Tribunal. The appeal is accordingly allowed. There will be no order as to costs in this Court. Any compensation payable over and above Rs.50,000/- shall be paid by respondent No.1, Mr. Ram Lal (owner of the vehicle).
Appeal allowed.
