NATIONAL INSURANCE COMPANY LIMITED Vs. PAKKIRIAMMAL,

JUDGEMENT

(1.) THE only point that arises for consideration in this appeal is whether Ex.R.1 policy limits the liability or whether the liability is unlimited. The appellant Insurance Company has filed an additional counter affidavit stating that on verification of the policy, it is found that their statutory liability is Rs.1,50,000/ - and that the same had not been increased by payment of additional premium. R.W.2 has stated that the said policy is only an 'Act Premium Policy'. Since no extra premium was paid, as per the Act Policy for the damage to the death, the limit is only Rs.1,50,000/ -. Learned counsel for the appellant denied the suggestion that insofar as the third party liability is concerned, there is no limit and he further denied the suggestion that the limitation was only in reference to the property.

(2.) IN terms of Section 95(2)(a) of the Motor Vehicles Act, 1939, the insurance company is obliged to satisfy the liability to an extent of of Rs.1,50,000/ - insofar as goods carriage vehicle is concerned. However, the case of the respondents is that inasmuch as the insurance covers third party risk, the liability is unlimited. The question that arises for consideration here is whether on payment of a premium of Rs.240/ - towards third party risks (TPR), the liability of the insurance company is unlimited or limited to Rs.1,50,000/ -. The Motor Insurance Rating Guide, which sets out the provisions relating to the benefits under motor insurance, has defined the types of insurance policies. The Liability to Public Risk Policy has been defined as follows:

(3.) AS per the definitions of the three types of policies, we find that each one of them are distinct and separate. The comprehensive insurance policy covers the following risks :