NATIONAL INSURANCE CO LTD Vs. KRUSHNA CHANDRA DAS

JUDGEMENT

(1.) INSURER is the appellant under Section 110 B. of the Motor Vehicles Act (hereinafter referred to as 'the Act').

(2.) ON 20th March 1986 at about 8 A.M. deceased was proceeding towards Garadapur on Salipur-Pattamundai road in a bi-cycle. Between Kalinga and Kulia, a bus bearing registration No. ORU 8115, in which passengers are carried, dashed against the deceased from behind causing severe injuries. He was removed to the hospital at Salipur and then to S.C.B. Medical College Hospital at Cuttack for treatment where he succumbed to the injuries on 21-3-1986. Alleging that the death was on account of negligent driving of the vehicle, widow, three minor children and parents filed an application under Section 110-A of the Act claiming compensation of Rs. 1,50,000/-. Owner and the Insurer both contested the claim petition. Tribunal on assessment of material held that the accident in which deceased sustained fatal injuries, was on account of negligent driving of the motor vehicle. Tribunal determining just compensation at Rs. 90,000/- on the finding that loss of annual dependency of the claimant was Rs. 6,000/-. Tribunal adopted the multiple of 15 times to determine the just compensation. Owner has not preferred any appeal. While Insurer assailed its liability for Rs. 90,000/-, claimants have filed a cross- objection claiming compensation of Rs. 1,50,000/-.

(3.) LEARNED Counsel for the Insurer appellant submitted that liability of the Insurer in this case ought to have been confined to Rs. 50,000/- in all as provided in Section 95(2)(b)(i) of the Act. It reads as follows: 95(2)(b)(i): Subject to the proviso to Sub-section (1), a policy of insurance shall cover any liability incurred in respect of any one accident up to the following limits, namely