ORIENTAL INSURANCE CO. LTD Vs. PURNAMASEE MOHARANA

JUDGEMENT

(1.) THE Insurance Company has filed this appeal challenging the award dated 27th NoVember, 2010 passed by the learned 1st Additional District Judge -cum -1st M.A.C.T. Cuttack in M.A.C. No. 352 of 2002.

(2.) THE respondent -claimants filed an application before the Tribunal claiming compensation to the tune of Rs. 9 Lakhs due to death of Brundaban Moharana in a vehicular accident on 19th April, 2002 at about 5.30 p.m. on N.H. 5 near C.R.P.F. Chhak, Bhubaneswar. While the deceased was coming from Nayapalli towards Khandagiri by that time the offending truck bearing registration No. A.P. -31 -5796 coming in a high speed in a rash and negligent manner caused the accident as a result of which the deceased sustained grievous brain injuries and other multiple injuries and died at the spot. The dead -body was brought to Capital Hospital for post - mortem. At the time of accident the deceased was aged 45 years, working at a carpenter in the office of the Central Public Works Department and getting salary of Rs. 7,500/ - per month. The offending vehicle was seized by the local and the documents seized by the police revealed the details of the offending vehicle. Since the claimants were the dependants, they claimed the aforesaid compensation. The owner of the offending vehicle alter receiving notice appeared and filed his written Statement denying the allegations made by the claimants. Thereafter, he did not contest the matter and was set ex parte. The Insurance Company contested the claim case and filed its written Statement denying the allegations made by the claimants. It had taken a specific plea that the claimants had to prove their case by adducing cogent evidence by filing all the relevant documents. Therefore, the Insurance Company was not liable to pay any compensation and the claim application was liable to be dismissed. On the above pleadings of the parties, the Tribunal framed as many as four issued and came to the finding that due to rash and negligent driving of the driver of the offending vehicle, the accident took place and the deceased succumbed to the injuries. The deceased was compute the compensation. The offending vehicle was not duly insured with the Insurance Company but its driver had a valid and effective driving licence at the time of accident. On such finding, the Tribunal allowed the claim application on contest against the Insurance Company and set ex parte against the owner of the offending vehicle with a Consolidated cost of ? 500/ - and directed the Insurance Company to pay the entire compensation amount at Rs. 8,24,118/ - with interest at the rare of 7.5% per annum from the date cf filing of the claim application, i.e. 1O th May, 2002, with a right to recover the compensation amount from the registered owner of the offending vehicle.

(3.) LEARNED Counsel for the Insurance Company submitted that admittedly the offending vehicle had no valid insurance policy covering the date of the accident as the cheque issued by the owner of the vehicle was dishonoured by the bank and thereafter the Insurance Company cancelled the policy and intimated the said fact to the owner of the offending vehicle. Therefore, the appellant - Insurance Company is not liable to pay the compensation amount. He further submitted that the compensation amount is at a higher side and, therefore, the same may be reduced.