BRANCH MANAGER UNITED INDIA INS Vs. SULAKHANI BEHERA

JUDGEMENT

(1.) The only point involved in these appeals is whether liability of United Insurance Company Ltd. (hereinafter referred to as the 'Insurer') was in excess of Rs. 15,000/ -.

(2.) A brief reference of the factual aspects is necessary for disposal of the appeals: Nineteen persons sustained injuries in an accident which occurred on 4.8.1987. The injured persons along with others were travelling in a passenger bus named Sri Laxmi bearing registration No. OSC 7233. The vehicle turned turtle by the side of the Colarnthara Govindpur Road near Parbatipur. The injured persons filed applications under Section 110 -A of the Motor Vehicles Act, 1939 (in short, the 'Act') claiming various amounts as compensation from M. Madhab Reddy (hereinafter referred to as the 'insured'). Since the vehicle was claimed to be insured with the insurer, it was also impleaded as a party.

(3.) THE Tribunal on consideration of evidence on record came to hold that accident occurred due to the rash and negligent driving of the insured's vehicle and awarded various amounts of compensation. It held that policy which was exhibited as Ext. A/1 indicated that extra premium to the extent of Rs. 1,50,000/ - has been paid, it was a comprehensive policy and therefore, it was to be presumed that liability of the insurer was unlimited. Reliance was placed on a decision of this Court in New India Assurance Co. Ltd. v. Ratnabala Mohapatra and Ors. 67 (1989) CLT 155 in support of this view.