ORIENTAL INSURANCE CO LTD Vs. DEGALA SATYANARAYANAMMA

JUDGEMENT

(1.) Respondents 1 and 2, the widow and the son of the deceased Balakrishna, filed OP No.10 of 1996 on the file of Motor Accidents Claims Tribunal- cum-III Additional District Judge, Kakinada, seeking compensation of Rs.2,33,000/- for the death of the deceased in an accident, caused by a van bearing No.KA.O-6-2028 belonging to fourth respondent and insured with the appellant, under hire purchase agreement with fifth respondent, while being driven in a rash and negligent manner by the third respondent. Third respondent remained ex parte before the Tribunal and this Court. Respondents 4 and 5 and the appellant contested the claim. The contention of the appellant, inter alia, is that it is not liable to pay any compensation because the vehicle involved in the accident was not insured with it by the time of the accident, and was insured with it subsequent to the accident.

(2.) In support of the case of Respondents 1 and 2 first respondent examined herself as PW.l and another witness as PW.2 and marked Exs.Al to A3. Third respondent, owner of the offending van, examined himself as RW.l and another witness as RW2 but did not adduce any documentary evidence. Appellant did not adduce any oral evidence but marked Ex.Bl to Ex.B4 on its behalf.

(3.) The Tribunal having held that the accident occurred due to the rash and negligent driving of the third respondent awarded Rs.2,20,500/- as compensation to Respondents 1 and 2 from Respondents 3 and 4 and the appellant jointly and severally, over ruling the objection of the appellant that it is not liable to pay the compensation. The Tribunal relied on New India Assurance Company Limited v. Ramdayal, 1990 ACJ 545 and V. Rani v. New Indian Assurance Company Limited, 1998 ACJ 598, for fastening the liability on the appellant. Aggrieved thereby the insurer of the offending vehicle preferred this appeal.