UNITED INDIA INSURANCE COMPANY LIMITED Vs. A LINGAM

JUDGEMENT

(1.) In this Motor Accident Civil Miscellaneous Appeal, the short issue that arises for consideration is whether the liability of the appellant insurance company is limited to Rs.6,000/- in respect of the damage caused to the vehicle owned by respondent No.1.

(2.) I have heard Sri R. Briz Mohan Singh, learned counsel for the appellant. Despite publication of notice in two newspapers through substituted service, respondent No.1 has not entered appearance and consequently there is no representation on his behalf at the hearing.

(3.) Respondent No.1 is the registered owner of lorry bearing No. AP 16U/4312. While the said lorry was used for transportation of coal, another lorry bearing No.AP 36T/5888 belonging to respondent No.2 and insured with the appellant hit the lorry owned by respondent No.1 in the process of overtaking and caused damage to the said vehicle. Respondent No.1 filed O.P.No.344 of 2005 on the file of the Chairman, Motor Accident Claims Tribunal-cum-II Additional District Judge, Warangal (for short Tribunal) claiming compensation of Rs.2,00,000/- under different heads, which includes a sum of Rs.1,00,000/- towards compensation for damage to the vehicle after deducting salvage value. The Tribunal through award impugned in this appeal partly decreed the O.P. by awarding Rs.80,000/- as compensation comprising Rs.70,000/- towards loss sustained by respondent No.1 on account of damage to the lorry and Rs.10,000/- towards loss of earnings. The Tribunal fixed joint and several liability on respondent No.2, owner of the offending vehicle, and also the appellant.