ORIENTAL INSURANCE CO LTD Vs. JOSHY

JUDGEMENT

(1.) This appeal by one insurance company is in challenge of the direction contained in an award passed by a Motor Accidents Claims Tribunal (for short 'the Claims Tribunal'.) that the awarded compensation should be paid by the appellant insurance company.

(2.) The claimant in the case is a minor boy who sustained some injuries in a motor accident which took place on 23-11-1994. The claim was for compensation exceeding a lakh of rupees, but the Claims Tribunal awarded a sum of Rs.40,000/- together with interest at 12% per annum. Appellant company was directed to pay the amount as the vehicle involved in the accident was insured with the appellant company.

(3.) One of the main contentions advanced by the appellant before the Claims Tribunal was this: At the lime when the certificate of insurance and policy were issued in respect of the vehicle (a scooter) its owner was the fourth respondent. But much before the accident the ownership of the vehicle was transferred to the second respondent. So the policy became lapsed and the insurer is not liable under the policy any more. The above contention was not found favour with the Claims Tribunal. After holding that the accident was the consequence of the scooterist the Claims Tribunal held that the insurer is also liable to make the compensation amount good.