UNITED INDIA INSURANCE COMPANY LIMITED Vs. SITA DEVI

JUDGEMENT

(1.) IN ail the three appeals, the point for consideration is the limit of liability for the Insurance Company. The insured 'svehicle was a passenger carrying bus and the persons that had made the claims were either the injured or the representatives, who were travelling in a jeep that had collided with the bus. As far as the claimants were concerned, the deceased or the injured persons were third parties to the bus. The accident had taken place on 15.07.1986 and admittedly the terms of the policy were governed by the Motor Vehicles Act of 1939. As far as the liability of the Insurance Company was concerned, the terms of the policy mentioned the limit of liability as

(2.) THE Tribunal, while discussing the limited of liability, made an issue on the fact that the proposal form had not been filed into Court to examine what was the limit which was mentioned in the proposal. If the terms of the policy themselves were filed before Court and there was no denial of the fact of the issuance of policy to the owner, he cannot plead for rights in excess of what is assured under such terms. I have seen the copy of the policy where I find that only a basic premium of Rs.240/ - has been paid for third party risk. There is no escape from a consequence that each one of the claims arising under the accident would stand pegged down to Rs.50,000/ - as regards the insurer. The amount in excess shall, therefore, be recovered against the owner/insured only.

(3.) DURING the pendency of the case if the Insurance Company had paid the amount in excess of the limit as found now through this order, the right of recovery for the insurer will avail only against the insured and not against any of the claimants.