RAM SINGH Vs. DASHRATH

JUDGEMENT

(1.) THIS order shall also govern the disposal of M.A. No. 102/2012 which is the appeal filed by the respondent No. 3/Insurance Company as in both the appeals the award under challenge is dated 11th October, 2011 passed by M.A.C.T., Fast Track Court, Kukshi in Claim Case No. 270/2010 whereby the claim petition filed by the appellants was allowed and compensation of Rs. 3,52,500 was awarded on account of death of Sakribai who died in the motor accident which took place on 17th December, 2009. Learned Counsel for appellants submits that learned Tribunal assessed the income @ Rs. 100 per day but calculated the compensation @ Rs. 2,500 per month out of which 1/4th was deducted towards personal expenses and after applying the multiplier of 15, compensation was calculated. It is submitted that since accident is of the year 2009, therefore income assessed is on lower side. It is submitted that if the income was taken as Rs. 100 per day, there was no justification assess the income @ Rs. 2,500 per month and in all the heads the amount awarded is on lower side, hence prayed that appeal the allowed and amount be enhanced.

(2.) LEARNED Counsel for respondent No. 3 submits that amount awarded is on higher side. It is submitted that since the offending vehicle was being used in violation of terms of policy, therefore, respondent No. 3 ought to have been exonerated. It is further submitted that even if it is assumed that offending vehicle was being used for the purpose for which it was insured, then too, liability of respondent No. 3 is limited to the extent of Rs. 1 lac per passenger. For this contention, reliance is placed on a decision in the matter of Divisional Manager, Oriental Insurance Co. Ltd. v. Arati Mishra, : 2011 A.C.J. 196, wherein private jeep was insured under Act only policy carrying gratuitous passengers, met with accident due to rash and negligent driving resulting in death of passengers. Orissa High Court held that Insurance Company is not liable. United India Insurance Co. Ltd. v. C. Govardhan, : 2008 A.C.J. 1140, wherein passengers travelling in a jeep which dashed against a truck and a passenger in jeep sustained injuries, Insurance Company sought to avoid its liability on the ground that jeep was insured covering third party risk and risk of injured who was a fare paying passenger was not covered, the jeep was not a public service vehicle and insurance of passengers travelling in it was optional and not compulsory, the jeep was insured under Act only policy and did not cover the risk of passengers. Andhra Pradesh High Court held that passenger is not a third party and Insurance Company is not liable. It is submitted that appeal filed by the respondent No. 3 be allowed and appeal filed by the appellant be dismissed.

(3.) THUS , appellants are entitled for a sum of Rs. 4,35,000 instead of Rs. 4,35,000 instead of Rs. 3,52,500. The enhanced amount of Rs. 82,500 shall carry interest @ 8% per annum from the date of application.