S NANDAMMA Vs. S TAYANNA

JUDGEMENT

(1.) THIS appeal is filed by the claimants against the order dated 17/10/2002 in MVOP No.118 of 2002 on the file of the Motor Accidents Claims Tribunal-cum-I Additional District Judge, Kurnool whereby and whereunder the claimants were awarded an amount of Rs.5,03,527/- as against the claim of Rs.10,00,000/-, with proportionate costs and interest at 9% per annum from the date of the accident till the date of realisation.

(2.) THE facts leading to the filing of this appeal can be summarised as follows: On 27.10.2001, the deceased along with others was travelling by jeep bearing No.AP- 21-A-9018 to go to Kurnool; that when the said vehicle reached Nannur Electrical Sub- Station, the driver-cum-owner drove it at high speed in a rash and negligent manner and it turned turtle due to bursting of the rear left side tyre and he lost control over the vehicle resulting in the death of the deceased-Daaw on the spot and causing grievous injuries to other passengers. Orvakal P.S. registered a case in Crime No.71/2001; that the first appellant-wife, second and third appellants-minor children of the deceased preferred claim petition for compensation of Rs.10,00,000/-.

(3.) THE learned Standing Counsel for the second respondent-insurance company submits that Ex.B1 -policy did not cover the risk of fare paid passengers and that carrying passengers in the accident vehicle amounts to violation of policy conditions. THErefore, the insurance company is not liable to pay any compensation. As per the terms of Ex.B1-policy, the liability of the insurer is limited to the extent of Rs.1,00,000/- per each passenger in case of death or injury. In case where the insurance company failed to raise specific plea in its counter that its liability is restricted to Rs.1,00,000/- in respect of each passenger, the Tribunal should consider the same and restrict the liability only to that extent in view of clause (ii) of sub-rule (7) of Rule 476 of A.P. Motor Vehicles Rules 1989. In case of fastening liability on the insurance company to pay the entire compensation amount, it may be permitted to recover the said compensation amount from the insured i.e. owner of the accident vehicle and to that effect he relied on decisions reported in United India Insurance Company Ltd., Adilabad District v. Gorla Shankar and others, 2003 (2) ALD 775 = 2003 (2) ALT 596 and National Insurance Co. Ltd. v. Challa Bharathamma and others, 2004 ACJ 2094. He further submits that the interest should be restricted to 6% per annum and to that effect he relied on decisions reported in Shyamwati Sharma and others v. Karam Singh, 2010 (5) ALD 142 (SC) = 2010 (1) DT (SC) 330 and Sarla Verma and others v. Delhi Transport Corporation and another, 2009(3) ALD 83 (SC) = 2009 ACJ 1298.