ORIENTAL INSURANCE COMPANY LTD Vs. RAJENDRA KUMAR JAIN

JUDGEMENT

(1.) Notices have been sent to the respondent No. 6 by registered post. The office reported that neither undelivered cover nor acknowledgment has been received back after service. Thus, there is sufficient service on the respondent No. 6. Heard Sri A.K. Shukla, learned counsel for the appellant. No one appears on behalf of the respondents.

(2.) The appellant is insurer of bus bearing registration No. URU 1566, involved in an accident and was attached with U.P.S.R.T.C. In the accident certain persons sitting in the bus have died and some persons suffered injuries. Tribunal has awarded the compensation at Rs. 27,000/- and directed the appellant to pay the compensation alongwith interest. Present is the case of death.

(3.) Learned counsel for the appellant submitted that the accident took place on 27.2.1982 and on the date of the accident, under Section 95(2)(b)(ii) of Motor Vehicles Act, 1939 (hereinafter referred to as the "Act") as it existed in respect of each individual passenger there was limited liability of Rs. 5,000/- only on the insurance company. He submitted that though the insurance was comprehensive and statutory in respect of the third party risk, no extra premium has been paid in respect of the third party for unlimited liability and, therefore, under Section 95(2)(b)(ii) of the Act the insurance company is liable to pay only Rs. 5,000/- and the balance amount is payable by the owner of the vehicle.