NEW INDIA ASSURANCE CO LTD Vs. RAMCHANDRAN

JUDGEMENT

(1.) New India Insurance Co., the 3rd respondent in O. P. 1952/92 before the Motor Accidents Claims Tribunal, Palakkad, has come up in appeal, challenging the award of compensation by the above Tribunal. Sreekala, a girl aged 17 years, sustained injuries in a motor traffic accident on 28.4.1992 while she was travelling in a bus bearing No. KLG 8180. The lorry bearing No. KLG 1240 hit against the above bus and thus Sreekala sustained injuries and later succumbed to the injuries. The parents and the brother of the deceased (respondents 1 to 3 herein) approached the Tribunal making a claim of compensation of Rs. 7,54,000/- from the driver, owner and the insurer of both the vehicles. The appellant was the insurer of the offending vehicle, the lorry. The Tribunal, after considering the evidence, awarded a total compensation of Rs. 4,04,072/- with interest at 12% from the date of petition. It was further held that the appellant, the insurer of the offending vehicle viz., the lorry was liable to deposit the entire compensation amount. Aggrieved by the above award, the insurance company has come up in appeal challenging, mainly, the quantum of compensation.

(2.) Heard the learned counsel for the appellant and the respondents.

(3.) The parents and brother of deceased Sreekala, a girl aged 17 years, filed the petition before the Tribunal making a claim of Rs. 7,54,000/- towards compensation. The appellant, the insurer, along with the owner and the driver of the lorry, filed a joint written statement before the Tribunal contending that the accident occurred solely due to the negligence of the driver of the bus and as such the appellant as well as the owner and the driver of the lorry were not liable to pay any compensation. It was further contended that the amount claimed was exorbitant and unallowable. The Tribunal after taking evidence found that the accident occurred solely due to the rash and negligent driving of the lorry by its driver. The above finding regarding negligence was not challenged. The Tribunal awarded a total compensation of Rs. 4,04,072/-. In fact, the quantum awarded by the Tribunal alone was challenged by the insurance company. Respondents 1 to 3, the parents and the brother of the deceased, filed a cross objection contending that the amount awarded was not adequate but it was too low and hence claimed enhanced compensation.