NATIONAL INSURANCE CO LTD Vs. AYYADURAI

JUDGEMENT

(1.) The insurer is the appellant. The Policy it had issued was in respect of a motor vehicle which had mounted on it a drilling rig. The Policy contained Endorsement No.37, which reads as follows:-

(2.) Section II referred to therein is the Section dealing with liability to third parties, Section I being loss or damage to the vehicle. The liability to third parties was thus covered under the policy only in so far as it was necessary to meet the requirements of the Motor Vehicles Act, 1988. Any liability incurred by the insured arising out of the "operation as tool of such vehicle or of plant forming part of that vehicle or attached thereto" was excluded from the coverage.

(3.) The insured had under this policy insured the lorry which he had valued at Rs.1,50,000/-. He had also insured the drilling rig mounted on it, which he had valued at Rs.4,50,000/-. The premium paid was Rs.6,150/- for "own damage". For "liability" the amount paid was Rs.335/-, which included Rs.75/- for five workmen.