UNITED INDIA INSURANCE CO LTD Vs. ANNAMMA SEBASTIAN

JUDGEMENT

(1.) The above appeals arise out of an award passed by the M.A.C.T. Kottayam on O.P. (MV) 523/87. M.F.A. 651/90 is at the instance of the Insurance Company. M.RA. 883/90 is filed by the registered owner of the offending vehicle and M.F.A. 978/90 by the claimants for enhancement of the amount of compensation.

(2.) The petition was filed by the widow, five children and the mother of Dr. Sebastian who died in a road traffic accident on 17.1.1987, claiming compensation to the extent of Rs.24,34,000/-. Tribunal found that the accident happened due to the negligence on the part of the driver of the lorry which hit against the car in a head on collision resulting in Dr. Sebastian sustaining fatal injuries. Eventhough the injured was shifted to the Medical College Hospital immediately after the accident, he succumbed to the injuries after reaching the Medical College Hospital. Tribunal found that the claimants are entitled to compensation to the extent of Rs.9,21,004/- with 12% interest. 4th respondent Insurance Company which had covered the offending vehicle by a valid insurance policy, was directed to deposit the amount after entering a finding that the driver and registered owner of the lorry and Insurance Company are liable to pay the compensation.

(3.) In M.F.A. 651/90, Insurance Company raises the contention that no liability should have been cast on it since the registered owner had transferred the vehicle in favour of the 3rd respondent at the time of the accident, the 2nd respondent with whom the Insurance Company had entered into a contract of insurance, was no longer the owner of the vehicle and therefore, Insurance Company cannot have any liability to pay the compensation. We do not find any merit in this contention in the light of the authoritative pronouncement of the Supreme Court. Since the accident in this case happened on 17.1.1987, the law that is applicable is the provisions of Motor Vehicles Act, 1939. Supreme Court had occasion to consider the liability of the Insurance Company as per the provisions of Motor Vehicles Act, 1939 under similar circumstances in two decisions: New India Assurance Co. Ltd. v. Sheela Rani (Smt) and Others, 1998 (6) SCC 599 and G. Govindan v. New India Assurance Co. Ltd. and Others, AIR 1999 SC 1398 . Reference was made in detail to a Full Bench decision of the Andhra Pradesh High Court in Madineni Kondaiah v. Yaseen Fatima, AIR 1986 AP 62 by the Supreme Court in the latter decision and the principle laid down therein was approved in full. After referring to the provisions contained under S.95, it was observed by the Full Bench as follows: