ORIENTAL INSURACE COMPANY LTD Vs. SARUPI DEVI

JUDGEMENT

(1.) THESE four Appeals arise out of four separate judgments dated 31.07.2010 arising out of the same accident. The First Respondent in each of the Appeals was awarded a compensation of Rs.18,000/-, 19,000/-, 25,000/- and Rs. 19,000/- respectively.

(2.) THE only ground of challenge is that the Appellant successfully proved the breach of the terms of the policy by establishing that the vehicle, that is, Tata Sumo No.DL-5CB-4690 was being used for hire and reward, yet instead of exonerating the Appellant Insurance Company of its liability, the Claims Tribunal made it liable to pay the compensation with a right to recover it from the Respondents No.2 and 3.

(3.) THE three Judge Bench of the Supreme Court in National Insurance Company Limited v. Swaran Singh & Ors., (2004) 3 SCC 297 again emphasized that the liability of the insurer to satisfy the decree passed in favour of the third party was statutory. It approved the decision in Sohan Lal Passi, Kamla and Lehru. Paras 73 and 105 of the report are extracted hereunder: