ORIENTAL INSURANCE COMPANY LTD Vs. C SANTHAMANI

JUDGEMENT

(1.) Since the appeal and Cross Objection arise against the very same award of the Motor Accidents Claims Tribunal, Coimbatore, the same are being disposed of by the following common judgment. Aggrieved by the award of the Motor Accidents Claims Tribunal, Coimbatore dated 10-1-94 in M.C.O.P.No. 224/90, Oriental Insurance Company, Pollachi has filed C.M.A.No. 690/94. Respondents 1 to 4 in this appeal, claimants have filed Cross Objection No.73/95, seeking further compensation of Rs.1,00,000/-.

(2.) Heard the learned counsel for the appellant as well as contesting respondents 1 to 4.

(3.) Mr. M.B. Raghavan, learned counsel for the appellant Insurance Company, by drawing our attention to Section 95 (2) (a) of Motor Vehicles Act, 1939 and terms and conditions of policy of insurance, namely, Ex.B-5, would contend that their liability is restricted to Rs.1,50,000/- only and that the Tribunal committed an error in passing the entire liability on the Insurance Company which is unsustainable in law. Regarding cross objection, it is his contention that inasmuch as the appeal is only by the Insurance Company questioning its liability, the cross objection in their appeal by the claimants is not maintainable and liable to be dismissed. On the other hand, Mr. K. Mohan Ram, learned counsel for the respondents 1 to 4/claimants, would contend that the deceased being a third party, and in the light of valid insurance policy, the appellant insurance company is liable to pay the entire amount and the same has been rightly granted by the Tribunal. In any event, according to him, even if the case of the appellant is acceptable, direction may be issued for payment of the entire amount by the insurance company at the first instance with a liberty to them to recover the same from the owner of the vehicle. In so far as the cross objection is concerned, it is stated that the compensation was arrived at after applying proper multiplier, and the deduction of 1/4th amount towards uncertainty of life etc., cannot be sustained, accordingly the cross objectors are entitled to a further compensation of Rs.1,00,000/-.