LAWS(APH)-1999-10-17

NEW INDIA ASSURANCE CO LTD Vs. KANCHERLA SURYAVATHI

Decided On October 04, 1999
NEW INDIA ASSURANCE CO.LTD. Appellant
V/S
KANCHERLA SURYAVATHI Respondents

JUDGEMENT

(1.) This appeal was filed by the New India Assurance Co. Ltd., Kakinada, against the order and decree dated 29.3.1994 in O.P. No. 85 of 1990 on the file of the Chairman (III Addl. Dist. Judge), Motor Accidents Claims Tribunal, Kakinada, wherein the Tribunal has awarded compensation of Rs. 1,69,000 for the death of the deceased Kancherla Venkata Suryanarayana Rao, in a motor vehicle accident that has occurred on 24.9.89, at about 4.30 p.m. when the deceased was going on his scooter bearing No. ATP 8309 along with his brother's daughter, 4 years and his daughter, on Samalkota-Kakinada Road, towards Kakinada, a taxi bearing No. AAW 333 coming in the opposite direction being driven by its driver in a rash and negligent manner dashed against the scooter, as a result of which the deceased sustained severe injuries and he was shifted to Government General Hospital, Kakinada, and he succumbed to the injuries on 11.10.1989 and the scooter was also badly damaged. It is stated that the deceased was earning Rs. 6,000 per month by doing business in iron, general and hardware materials. Therefore, the claimants claimed an amount of Rs. 7,70,000 by way of compensation and the Tribunal awarded Rs. 1,69,000.

(2.) The learned counsel for the appellant submitted that the accident occurred on 24.9.1989 and the Motor Vehicles Act, 1988 came into force w.e.f. 1.7.1989 and the insurance policy Exh. B-1 covering the vehicle was in operation for a period of one year w.e.f. 10.5.1989 to 9.5.1990 and as per proviso to sub-section (2) of section 147 of the Motor Vehicles Act, 1988, the liability of the appellant is only Rs. 50,000.

(3.) Proviso to sub-section (2) of section 147 of the Motor Vehicles Act, 1988 reads as under: