NEW INDIA ASSURANCE CO LTD Vs. ANOKHILAL

JUDGEMENT

(1.) THE New India this appeal against the award dated 2.3.1981, Assurance Co. Ltd., Indore, has come up in passed by the Motor Accidents Claims Tribunal, Jhabua, in Claim Case No. 1 of 1979.

(2.) THE claimants claimed compensation of Rs. 10,600/ - for the death of Goverdhan on 27.11.1978, arising out of use of motor vehicle truck No. GTB 6055. The deceased was 21 years of age and was employed as a cleaner on the said truck on the monthly wages of Rs. 260/ - per month. The Tribunal after appreciating evidence awarded Rs. 37,800/ - as compensation with 6 per cent interest per annum from the date of the application, i.e., 24.1.1979.

(3.) IN my opinion, the law has been settled by the decisions of this Court, wherein it has been laid down that a statutory duty is cast upon the insurer under Sub -section (1) read with proviso (1) of Section 95 to indemnify the insured against any liability to pay the compensation to his employee under the Act and such a provision has been made in the insurance policy. As the choice is with the heirs and the heirs have chosen the forum of the Claims Tribunal Judge, instead of the Commissioner for Workmen's Compensation, they are entitled to receive the compensation to the extent of insured's liability fixed by the Motor Vehicles Act, 1939 and the insurance company cannot be allowed to say that insured's liability is limited under the Act [See Oriental Fire and Genl. Ins. Co. Ltd. v. Dhanno 1987 ACJ 759 (MP) and Kishori v. Gulabkhan 1988 ACJ 860 (MP) and the view of Calcutta and Madras High Courts in Oriental Fire and Genl. Ins. Co. Ltd. v. Josheda 1991 ACJ 349 (Calcutta) and United India Insurance Co. Ltd. v. Angammal 1991 ACJ 449 (Madras)].