NEW INDIA ASSURANCE CO LTD Vs. SWARAN KHANNA

JUDGEMENT

(1.) THE short question which arises for decision in the present appeal is whether the liability of the appellant-Insurance Company was limited to the extent of ` 50,000/- only or it was unlimited third party liability as held by the learned Motor Accidents Claims Tribunal by its judgment and award dated 10th June, 1994.

(2.) THE appellant-Insurance Company was the respondent No.3 in the Claim Petition filed under Sections 110A and 92A of the Motor Vehicles Act, 1939 by the legal representatives of the deceased Ramesh Kumar Khanna, who died as a result of a road accident, which took place on 10.03.1986. In the written statement filed by the appellant, it was asserted that its liability was limited to ` 50,000/- as the policy issued by it insuring the offending vehicle, being a taxi bearing No.CHZ 1, was an Act Only Policy?. In order to substantiate its aforesaid assertion, the appellant-Insurance Company adduced the evidence of its Branch Manager RW1 Shri M.S. Bindra, who proved the original policy of insurance produced by the respondent No.3 as Ex.RW1/1. RW1, in his testimony, testified that no extra premium had been charged and that ` 180/- was charged from the insured to cover third party risk to meet the requirements of Section 95 of the Motor Vehicles Act, 1939. In the policy Ex.RW1/1, which was proved in evidence by RW1 Shri Bindra, the limit of the amount of the Company?s liability for damage to property was stated to be ` 1,50,000/-. THE learned Tribunal taking note of this fact held that the liability of the Insurance Company with regard to physical injury to third party was, therefore, unlimited. This conclusion was arrived at by the learned Tribunal on the basis of an excerpt of the Tariff? produced by the Insurance Company, which is reproduced hereinbelow:- ADDITIONAL PREMIUM IN RESPECT OF THIRD PARTY & INDEMNITY LIMITS. Liability to the Public Risks: THE indemnity granted to the Insured may be increased in respect of the undernoted vehicles by payment of an additional premium on the following scale. In case where the limits or indemnity provided under the standard policy exceed Rs.50,000/- such limits may be increased in accordance with the scale at an additional premium equivalent to the difference between the scale rates for such standard policy limits and those for required increased limits. Limits of liability Scales of rates applicable to all commercial vehicles except (i) goods carrying vehicles -General Cartage Class A(2) & (ii) Motor Trade Road Risk only Class E. Scale of rates applicable to goods carrying vehicles General Cartage Class A(2) Per vehicle Per Trailer Per vehicle Per Trailer

(3.) MR. Pankaj Seth, the learned counsel for the Insurance Company, vehemently contended that the findings rendered by the learned Tribunal in respect of the insurance policy in question were altogether erroneous. He contended that the learned Tribunal had completely misread and misunderstood the contents of the original policy of insurance Ex.RW1/1, inasmuch as it was nowhere mentioned in the said policy that any additional premium was charged by the appellant-Insurance Company for increasing the limits of liability in respect of personal injury beyond the statutory liability.