NEW INDIA ASSURANCE CO LTD Vs. G NAGARAJU

JUDGEMENT

(1.) This appeal by the New India Assurance Co. Ltd., is directed against the judgment and award dated 19.12.2009 passed by the Motor Accidents Claims Tribunal-V, Bangalore City, in M.V.C. No. 8264/2008. The appellant is the Insurer of the TVS motorcycle bearing registration No. KA-04-EN-7380.

(2.) By the impugned judgment, the Tribunal has awarded a compensation of Rs. 5,06,500/- along with interest thereon @ 6% p.a. for the death of one Shobha in a motor vehicle accident that occurred on 22.08.2008 while she was travelling as a pillion rider along with her husband as rider of the aforesaid TVS motorcycle. The husband, who is respondent No. 1 herein, is the owner/insured of the motorcycle. The claimants are the children of the deceased and the insured, who are arrayed as respondent Nos. 2 and 3 herein. The claim petition was filed under Section 163-A of the Motor Vehicles Act, 1988 ('the Act' for short). The Tribunal, having found that the accident arose out of the use of the motorcycle, has awarded the aforesaid compensation.

(3.) The sole contention urged by the learned Counsel appearing for the appellant-Insurance Company is that the Tribunal had erred in law in making the Insurance Company liable for the award. His submission is that the deceased was not a third party; she being the wife of the insured, and the claimants being their children, no liability could be fastened on the appellant-Insurance Company. In support of his contention, he relied on the following judgments: