UNITED INDIA INSURANCE CO. LTD. Vs. INDRA

JUDGEMENT

(1.) This appeal is directed against the award dated 7.2.1994 passed by the Judge, Motor Accidents Claims Tribunal, Tonk, by which the learned Judge of the Tribunal awarded a sum of Rs. 25,000.00 as compensation for 'no-fault liability' under Sec. 140 of the Motor Vehicles' Act.

(2.) The contention of learned Counsel for the appellant is that on 20th April, 1993 no policy covering the insurance of the vehicle in question was issued in favour of the owner of the vehicle and policy was only for the period with effect from 21st April, 1993 to 20th April, 1994 and, therefore, the insurance company is not liable to indemnify the insured and the learned Judge of the Tribunal was not justified in directing the appellant to pay an amount of Rs. 25,000.00 against 'no-fault liability'.

(3.) Sec. 140 of the Act deals with the liability to pay compensation in certain cases on the principle of 'no fault liability'. At the stage of awarding the compensation, the court has only to see whether the accident took place with a motor vehicle So far as the liability of the insurance company to pay compensation at this stage is concerned, the court is further required to see whether the vehicle is insured. In the present case, there is no dispute that the accident took place with a motor vehicle and there was an insurance policy covering the risk. The payment was made on 20th April, 1993 and the policy and the covering note show that the insurance shall be for the period from 21th April, 1993 to 20th April, 1994. What will be the effect of the payment made on 20th April, 1993 and whether the policy covers the insurance of the motor vehicle with effect from 20th April, 1993, is the matter of evidence which will be decided by the Tribunal at the time of final hearing of the case. But so far as the payment under Sec. 140 of the Act is concerned both the requirements of the law stand satisfied as the accident took place with a motor vehicle and the vehicle is covered with an insurance policy. In this view of the matter the learned Judge of the Tribunal was right in directing the insurance company to make payment of compensation of Rs. 25,000.00 for 'no-fault liability' under Sec. 140 of the Motor Vehicles Act, 1988. No illegality has been committed by the learned Judge of the Tribunal in awarding the compensation.