UNITED INDIA INSURANCE CO LTD Vs. B VIJAYA

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.