NATIONAL INSURANCE CO LTD Vs. GOURI

JUDGEMENT

(1.) The insurer has come up with this appeal contending that, in terms of the admitted insurance policy, the liability is limited. In spite of that, the tribunal has awarded the amount as if the policy did not have any such limitation clause.

(2.) It is true that the policy in question was one issued under S.95 of the Motor Vehicles Act, 1939, covering a period from 10.11.1988 to 9.11.1989. During the currency of the policy, that Act was repealed and a new Act, the Motor Vehicles Act, 1988 was enforced with effect from 1.7.1989. From that day onwards, in terms of S.147 of that Act, the policy cannot have any limitation as was there in terms of S.95 of 1939 Act. If the new Section is applied, the insurer will not get the benefit.

(3.) The accident occurred on 10.9.1999, after enforcement of the new Act. The proviso to S.147(2) reads as follows: