UNITED INDIA INSURANCE CO LTD Vs. DARSHAN KAUR

JUDGEMENT

(1.) Vide order dated 18.7.1998, Motor Accidents Claims Tribunal, Sirsa, awarded Rs. 50,000 as compensation under the head no fault liability to Darshan Kaur and others, claimants in claim application filed by them against United India Insurance Co. Ltd., etc., under section 166 of the Motor Vehicles Act, 1988 for the grant of compensation to them on account of the death of their breadwinner Harjinder Singh. As per the facts put forth in the claim application Harjinder Singh was travelling on 18.1.1997 in canter No. DL-1L-6251 which was owned by him. On the way tyre of the canter burst and as a result of mishap, Harjinder Singh suffered fatal injuries. Canter was being driven by Gurnam Singh. It was insured with the United India Insurance Co. Ltd.

(2.) Aggrieved from this award passed under the 'no fault liability'. United India Insurance Co. Ltd. has come up in revision to this court by invoking its jurisdiction under Article 227 of the Constitution of India.

(3.) Learned counsel for the petitioner submits that the United India Insurance Co. Ltd. is not liable to reimburse the claimants. United India Insurance Co. Ltd. would have been liable to reimburse if some body else had died while travelling by this canter in accident. It is submitted that the contract of insurance entered into between Hajinder Singh and the insurer (United India Insurance Co. Ltd.) is that the insurer will compensate the third party if it suffers injury or death and Harjinder Singh is called upon to compensate third party or the dependants of that third party. In support of this submission, lie has drawn my attention to Hemlata Sahu v. Ramadhar, 2000 ACJ 134 (MP), which is judgment of a Division Bench of the MadhyaPradesh High Court where Madhya Pradesh High Court has held that the basis of insurance is that if any liability arises then the insurance company shall be liable to indemnify the third party on behalf of the insured. But in case when the insured himself meets with an accident and dies then that risk is not covered by the insurance policy. The liability of insurance company is to compensate the insured towards the risk of third party and to satisfy the judgment and award passed against the insured.