ORIENTAL INSURANCE CO LTD Vs. JANAKI SWAIN

JUDGEMENT

(1.) THIS is an appeal by the insurer. Oriental Insurance Company Ltd. against the award of the Second Motor Accident Claims Tribunal (SD), Berhampur directing the appellant to pay a sum of Rs. 1.08,000/ - to the petitioners -respondents 1 to 7 with interest at the rate of 9 per cent per annum from the date of application till realisation.

(2.) THE short facts of the case are that at about 1.00 A.M. in the night of 24/25.1.1992, while the deceased as travelling in a jeep bearing No. AAS -2099 towards Ballipadar, due to rash and negligent driving, the said jeep met with an accident and capsized near the Mile -stone No. 15 under Gangapur P.S. resulting in death of the deceased. The legal representatives of the deceased have claimed compensation of Rs. 2,00,000/ -.

(3.) SRI M. Sinha, learned counsel appearing for the insurer -appellant, contends that the driver of the offending vehicle having no authorisation to drive any vehicle as a paid employee, the insurer is not liable to cover the liability of the insured, since absence of authorisation in the driving licence to drive as a paid employee would amount to driving the vehicle without a valid licence. The further contention of Mr. Sinha is that the vehicle having been transferred to the present owner, without the approval or sanction of the Insurance Company and without any endorsement in the Insurance Policy, the insurer has no liability under the policy. It is the submission of Sri Sinha, that in view of the materials on record the deceased being a paid employee of the owner of the offending vehicle, he is not covered under the policy and as such, the insurer is not liable to indemnify the owner, on his death resulting from the accident. It is further submitted that taking into consideration the contribution of the deceased to the family at Rs. 500/ - per month, the age of the deceased at 50 years, the application of multiplier 13 is illegal or erroneous inasmuch as the maximum multiplier applicable to a case of fatal accident being sixteen, as held by the Apex Court, the proper multiplier in the facts and circumstances would be 5 or 6, inasmuch as compensation of Rs. 10,000/ - on account of loss of estate assessed by the Tribunal was misconceived.