LAWS(P&H)-2010-9-51

NATIONAL INSURANCE COMPANY LIMITED Vs. CHANDRO

Decided On September 13, 2010
NATIONAL INSURANCE COMPANY LIMITED Appellant
V/S
CHANDRO Respondents

JUDGEMENT

(1.) THE Insurance Company is in appeal denying liability on the ground that the deceased was travelling on the mudguard of the tractor and the accident occurred when the tractor turned turtle. THE contention was that he was not authorized to travel on the mudguard of the tractor and there was no insurance cover for a person who is a passenger in a tractor which is not designed to carry passengers. This Court has held in the decisions in 'THE New India Assurance Company Limited v. Surinder Kaur' (F.A.O. No. 635 of 2005, decided on 1st September, 2010); 'United India Insurance Company Limited v. Sunita Devi and others' (F.A.O. No. 2656 of 2007, decided on 12th August, 2010) and in 'Oriental Insurance Company v. Gurmel Kaur and others' (F.A.O. No. 5063 of 2006) that the insurer shall not be liable in such a situation. THE liability case on the insurer, therefore, is set aside.

(2.) HOWEVER, in a recent judgment delivered by the Hon'ble Supreme Court in Eshwarappa @ Maheshwarappa and another v. C.S. Gurushanthappa and another (2010-4) 164 PLR 399 : 2010 (4) TAC 16 (SC), that even in a case where the liability to a particular person is not covered and if there was an insurance policy for the vehicle, that itself would make the insurer liable under Section 140 of the Motor Vehicles Act. The liability in such a case would be on no fault basis and it shall stand restricted to Rs. 50,000/-. The award of the Tribunal, under the circumstances, shall stand modified and the liability of the insurer will be restricted to be Rs. 50,000/- in the manner provided as above. It should also attract interest at the rate awarded by the Tribunal at Rs. 50,000/- only.