THE DIVISIONAL MANAGER, UNITED INDIA INSURANCE CO. LTD. REPRESENTED IN THIS APPEAL BY UNITED INDIA INSURANCE CO. LTD. BY ITS ASST. MANAGER Vs. SMT. GEETHA AND JAMEEL AHMED

JUDGEMENT

(1.) THIS appeal by the Insurer is directed against the judgment and award dated 25.5.2005 passed in MVC No. 957/2002 on the file of Addl. Civil Judge (Sr. Dn.) & Addl. MACT, Srirangapatna and reviewed by the order dated 20.6.2005. The Tribunal by its impugned judgment and award has awarded a sum of Rs. 3,42,000/ - with interest at 8% from the date of petition till realization and upon review of the said order, a sum of Rs. 4,34,000/ - with interest at 8% from the date of petition till its realization, on account of the death of deceased Ramesha in the road traffic accident.

(2.) IT is the specific case of the appellant -Insurer that the direction issued by the Tribunal to indemnify the award amount cannot be sustained in view of the breach of terms and conditions of the policy. Therefore, judgment of the Tribunal is liable to be set aside.

(3.) IT is the submission of the learned counsel for the appellant at the outset that there is breach of the terms and condition of the policy. The driver of the offending vehicle is not entitled to take the third party as passenger in the goods vehicle and it is the case of the claimant that deceased was carrying vegetables in the vehicle. He is a gratuitous passenger and also policy was an act policy. Therefore, the insurance company is not liable to indemnify the amount awarded by Tribunal. This aspect is not looked into nor considered nor appreciated by the Tribunal on the contrary, issued directions to the appellant/insurer to indemnify the award amount, which cannot be sustained and liable to be set aside.