UNITED INDIA INSURANCE COMPANY LTD. Vs. SURAJ KALA

JUDGEMENT

(1.) The instant appeal has been preferred by the Insurance company assailing the award dtd. 10/7/2019 passed in C.P. No.646 of 2013 whereby in a death case, the Tribunal has awarded a sum of Rs.3,36,000.00 along with 7% interest in favour of the claimants-respondents.

(2.) Shri Anil Kumar Srivastava, learned counsel for the appellant submits that the Tribunal has erred in fastening the liability on the insurance company for the reason that in terms of Sec. 147 of the Motor Vehicles Act, 1988, the deceased was not covered as the policy in question was merely an 'Act Policy' and in terms whereof only third party claims could have been indemnified. Since in the instant case, the driver was not covered and he caused the accident by his own negligence, therefore, not being a third party, the insurance company was not liable for the award. It is only the owner of the vehicle who could be made responsible and this aspect has not been appropriately considered by the Tribunal who has fixed the liability on the insurance Company.

(3.) It has further been urged that the Tribunal has misconstrued the decision of the Apex Court in the case of National Insurance Co. Ltd. vs. Prembai Patel and others AIR 2005 SC 2337 and without considering the contention of the insurance company that under the 'Act Policy', it was only a third party claim which could be covered and not the claim of the driver, hence, the award is bad.