UNITED INDIA INSURANCE COMPANY LTD Vs. GOPARAJU KOTAMMA

JUDGEMENT

(1.) This is an appeal by the third respondent - insurer in O.P.No.55 of 1987 on the file of the Motor Accidents Claims Tribunals (Additional District Judge), Khammam, against the order dated 8th March, 1989 granting a total compensation of Rs.2,16,200/-onaccountof death of oneGoparajuRamireddy in a motor vehicle accident.

(2.) Petitioners-claimants filed the above O.P. against the driver, owner and insurer, who are respondents 1, 2 and 3 respectively in the O.P. The Tribunal, after considering the evidence on record, awarded a total compensation of Rs.2,16,200/- with interest at 12% per annum from the date of petition i.e. 10-2-1987 till the date of payment with proportionate costs against the driver, owner and insurer jointly and severally.

(3.) Learned counsel for the appellant submits that the insurer was liable to pay Rs..1,50,000/- only as per the Motor Vehicles Act, 1939 and the contract entered into between the parties. Ex.B-1, insurance policy shows that it covers the risk of the owner against the third parties only and the policy was taken in pursuance of the Section 95(2) (a) of the Motor Vehicles Act, 1939 which reads: