ORIENTAL INSURANCE CO LTD Vs. PRAKASH

JUDGEMENT

(1.) THIS revision is directed against the order dated 20.1.1992 passed by the IVth Member, Motor Accidents Claims Tribunal, Indore, in Claim Case No. 64 of 1991, whereby the appellant insurance company has been directed to make payment of the interim award to the tune of Rs. 12,000.

(2.) THE contention of the learned counsel for the appellant is that the driver and the owner of the vehicle have not been served and it is the risk of the owner, that is, covered by the insurance company and, therefore, the interim award could not be passed. The second contention of the learned counsel for the appellant is that the insurance was done after the accident and, therefore, the insurance company is not liable.

(3.) IT is an established principle of law that primarily the driver of the vehicle, who rashly and negligently drives the vehicle and causes accident, is liable for the compensation. The owner of the vehicle is made liable on the principle of vicarious liability as the same has been done by the servant of the owner.