ORIENTAL INSURANCE CO LTD Vs. MUNNI DEVI

JUDGEMENT

(1.) HEARD counsel. This is a very short matter, hanging fire for a long time. An order was passed on 8.4.1991 in this petition to be heard on 8th of May, 1991. Apparently, therefore, early hearing application is made and that we are bound to allow and bound also to take up hearing for immediate disposal.

(2.) IT is insurer's appeal and the only contention pressed is that in terms of statutory provisions and also the provisions of the insurance policy, appellant's liability be reduced to Rs. 50,000/ -. Although an award in the sum of Rs. 70,000/ - is passed, taking the view that insurer's statutory limit of liability is Rs. 75,000/ -, the entire liability under the award is saddled on the appellant.

(3.) IT is true, additional premium for 50 passengers at the rate of Rs. 20/ - is charged and it is indeed for this reason that a higher contractual liability is undertaken by the insurer committing to pay Rs. 50,000/ - in respect of any one claim or series of claims arising out of one accident. We do not see any substance in the contention of Mr. Verma that because additional premium was paid, the liability should be deemed unlimited. On the other hand, what appears to us clear is that additional premium was charged for undertaking additional liability over the statutory limit.