NATIONAL INSURANCE COMPANY LTD Vs. SABITRI RANI DEVI

JUDGEMENT

(1.) THE respondent Nos. 1 to 4 herein are legal representatives of deceased Mahendra Kumar Natli. On 28th May, 2000, when the said deceased was driving, on the National Highway No. 37, at Chabua, his scooter, bearing registration No. AS-23B/1469, the said scooter collided against a bus bearing registration No. AS04-A-8652. As a result of the said collision, the said scooterist died. The respondent Nos. 1 to 4, as legal representatives of the said deceased, instituted a claim proceeding under Section 166 of the Motor Vehicles Act, 1988 (hereinafter referred to as "the M.V. Act") seeking compensation of a sum of Rs. 15 lacs. This claim application gave rise to M.A.C. Case No. 55/2001 in the Court of learned Motor Accident Claims Tribunal, Tinsukia.

(2.) IN the proceeding before the learned Tribunal, the petitioner herein, as insurer of the said scooter, took the plea that since the said deceased was the owner of the said scooter, he himself drove the scooter and became a victim of the accident, he, not being a third party, was not covered by the relevant insurance policy inasmuch as the said policy was an 'Act only' policy, which was issued under Section 147 of the M.V. Act. While the writ petitioner contested the proceeding the insurer of the said bus, namely, respondent No. 5 herein, settled the claim of the claimants aforementioned at a sum of Rs. 2,75,000 at a Lok Adalat. Subsequent thereto, the claim proceeding against the present petitioner continued and the same resulted into a judgment and award, dated 25th July, 2001, whereby the learned Tribunal directed the petitioner herein to pay Rs. 2,75,000 as compensation. It is, this award, which stands impugned in the present writ petition.

(3.) WHILE considering the present writ petition, what is of utmost importance to note is that under Section 147 of the M.V. Act, provisions for compulsory insurance have been made and, without insuring a vehicle, in terms of Section 147, the same cannot be placed by its owner for use in a public place. Independent of compulsory insurance, which Section 147 provides for, the insurer, in consideration of premium, may undertake such liabilities in respect whereof, no provision for compulsory insurance has been conceived under Section 147. A compulsory insurance policy, which is obtained in terms of Section 147, is known as a statutory policy or Act only policy.