NEW INDIA ASSURANCE CO LTD Vs. LEELAWATI AGNIHOTRI

JUDGEMENT

(1.) A short but interesting point is involved in this first appeal from order. In a claim petition filed under Section 110A of the Motor Vehicles Act, an award of Rs. 12,000 has been given in favour of the claimants. The insurance company with whom the motor cycle involved in the accident resulting in the death of Chotey Lal was insured has come up in appeal and it is contended that its liability is limited to the sum of Rs. 2,000 according to the terms of the policy. It is, therefore, urged that the award in excess of Rs. 2,000 cannot be enforced against it.

(2.) Learned counsel for the appellant has in this connection referred to Section 95 of the Motor Vehicles Act and according to him the maximum liability for payment of compensation which arises in favour of the claimants against it was Rs. 2,000 in view of Section 95(2)(d) of the Motor Vehicles Act. I cannot agree to this submission.

(3.) Section 95 of the Motor Vehicles Act is in two parts. Sub-clause (1) deals with the positive requirements which provides that certain conditions must be contained in a policy of insurance such as the person who issues the policy must be an authorised insurer. It must insure persons according to provision made in Sub-section (2) and the liability which the insurer must incur must be in respect of death, bodily injury or damage to property of the third party which may arise from the use of the vehicle in a public place. Further, it must also be in respect of death of, or bodily injury to, a passenger of a public service vehicle arising from the use of a vehicle in a public place. Proviso to this part also contains several exceptions. The second part of this section deals with the limits of liability under the policy of insurance in respect of various classes of vehicles. While Clause (a) deals with goods vehicles, Clause (b) refers to carriers of passengers and Clause (c) deals with other kinds of vehicles. Clause (d) is an exception to other clauses and it deals not with death or bodily injury but damage to the property of a third party.