USHA BAGHEL Vs. UNITED INDIA INSURANCE CO LTD

JUDGEMENT

(1.) THIS is a reterence made by order dated 16. 7. 2007 passed by a Division Bench of this court in M. A. No. 1576 of 2004.

(2.) FACTS which are necessary to answer this reference are that when Nand Kishore was driving autorickshaw he owned, the autorickshaw turned turtle and he sustained injuries. He was taken to Nagpur for treatment where he died on 30. 12. 2003. The autorickshaw was financed by District antvavyasayi Sahakari Vikas Samiti Maryadit, Seoni and was insured with United india Insurance Co. Ltd. The appellants claimed compensation of Rs. 18,16,000 on account of death of Nand Kishore. Insurer denied its liability for the compensation. The Claims Tribunal determined the compensation of Rs. 4,41,500 but held in the award that since additional premium was not paid to the insurer to cover the risk of the owner, the insurer was not liable to pay compensation. Aggrieved by the award dated 24. 12. 2004, passed by Tribunal the appellants filed the appeal M. A. No. 1576 of 2004.

(3.) BEFORE the Division Bench of this court hearing the appeal, the learned counsel for the appellants submitted that the risk of driver-cum-owner was covered by the insurance policy and the counsel for the appellants relied upon the following clause in the insurance policy: