ORIENTAL INSURANCE CO LTD Vs. SHETYAWWA AND ORS

JUDGEMENT

(1.) The Insurance Company has filed this appeal questioning the correctness and legality of the judgment and award passed by the MACT, Mudhol, in M.V.C.NO.1132/1999 dated 18.11.2006 whereunder the claim petition has been allowed in part and compensation has been awarded to the 1st respondent-claimant by fastening the liability on the owner of the vehicle on the ground that Insurance Policy does not cover the risk of the passengers travelling in a goods vehicle. However, Tribunal directed the Insurance Company to satisfy the award and recover the compensation amount from the owner of the offending vehicle. The Tribunal at paragraph 11 of the award assailed herein has held as hereunder:

(2.) Heard the learned counsel appearing for the parties.

(3.) A division bench of this Court in M.F.A.No.2596/2007 disposed of on 12.07.2012 had an occasion to consider similar issue namely as to "whether the Insurance Company is liable to indemnify the claim of the owner despite there being violation of the terms of the policy and it has been held as under: