USHA JAIN Vs. UNITED INDIA INSURANCE CO LTD

JUDGEMENT

(1.) ON 14.12.1988, as a result of a head -on collision between mini bus No. MPW 6541 and scooter No. CPW 1798, Devendra Kumar Gupta, the scooterist and Abhay Kumar Jain, pillion rider sitting behind him, died. Their heirs filed two claim cases, Nos. 13 of 1989 and 25 of 1989, which were consolidated for trial as they arose out of the same accident. A common award has been passed by the Motor Accidents Claims Tribunal, Gwalior (hereinafter referred to as 'the Tribunal') on 21.8.1991. In these two appeals, M.A. No. 250 of 1991 and M.A. No. 168 of 1992, a common order is being passed as they arise out of same accident and a common award.

(2.) IN both the appeals, preferred by the claimants, only two prayers have been made. The first is that the insurance company should have been directed to be jointly and severally liable with the owner of the vehicle and the driver and the liability of the insurance company should not have been held to be limited only to the extent of Rs. 60,000/ - in case of each death. The second prayer is for the quantum of compensation. It is urged that the amount of compensation, determined by the Tribunal, is on the lower side and it should be enhanced.

(3.) ON behalf of the claimants, the substance of all the contentions advanced by different counsel appearing for them is that Section 95 (2) (b) (i) and (ii) does not provide for any limited liability of the insurance company for death of or injury to a third party, i.e., a person who is not inside the vehicle. Reliance for the above purpose and interpretation of the said provision is made on New India Assurance Co. Ltd. v. Thakor Bhemaji Ganeshji 1993 ACJ 630 (Gujarat) and Oriental Insurance Co. Ltd. v. Martin Kanduna 1995 ACJ 522 (Orissa).