UNITED INDIA INSURANCE CO LTD Vs. D SURYAKANTHAM

JUDGEMENT

(1.) Insurance company is the appellant which has been held liable by the Motor Accidents Claims Tribunal, Visakapatnam, to pay an amount of Rs. 1,25,200/- jointly and severally with the respondent No, 7 - owner of the bus.

(2.) The facts giving rise to this appeal, in brief, are that on 20-6-1988 at about 7.40 a.m. the respondent No. 6 by negligently driving the bus bearing No. AAV 419 dashed from behind the cycle of the deceased due to which the cyclist, that is to say, the deceased suffered serious injuries and died on the same day at about 5 p.m. in the K.G. Hospital, Visakhapatnam. The wife and children of the deceased laid a claim for Rs. 2,00,000/- as compensation due to the sudden death of their bread-winner. They impleaded the Driver as respondent No. 1 in their claim petition but later abandoned the claim. The 2nd respondent remained absent after service of notice and he was proceeded ex parte. The appellant was impleaded as the third respondent. It denied the claim of the claimants in toto and alleged that its liability is limited to Rs. 50,000/- only. On assessment of the evidence on record, the Motor Accidents Claims Tribunal reached the conclusion that the accident had occurred due to the sole negligence of the sixth respondent and the claimants are entitled to compensation of Rs. 1,25,200/-. It also found that the insurance policy, Ex.B-2, is a comprehensive insurance policy and, therefore, sub-section (2) of Section 95 of the Motor Vehicles Act, 1939 (for short, 'Act of 1939') does not apply. It also held that even otherwise, the liability has been enhanced to Rs. 1,50,000/- by virtue of the amendment in Section 95(2)(a) of Act 47 of 1982. Holding so, it ordered that the appellant-insurance company is liable to pay the amount of compensation to the respondents No. 1 to 5.

(3.) Feeling aggrieved by the impugned award, the Insurance Company has preferred this appeal.