NEW INDIA ASSURANCE CO. LTD Vs. LAKSHMI DEVI

JUDGEMENT

(1.) THE controversy raised in this appeal is with regard to the extent of the liability of the Insurance Company for the amount awarded as compensation to the claimants.

(2.) THE facts relevant to this matter are that Pran Nath Kapila, who was travelling in the car PUV 9192 was killed when this car went and hit into a truck parked on the road side. This happened on March 30, 1978. The tribunal holding that the accident here had been caused by the rash and negligent driving of the car driver, awarded a sum of Rs. 72,000/- as compensation to the claimants, they being the widow and the minor children of the deceased as also his widowed mother. All the respondents including the Insurance Company with which the car had been insured wert held liable jointly and severally for the entire amount awarded.

(3.) THE point urged by Mr. J.R. Mittal, counsel for the claimants, on the other hand, was that the risk in respect of Prem Nath Kapila, deceased, must be taken to have been covered by the provisions of Section 95 of the Motor Vehicles Act, in view of the f that he was an employee of the owner of the car. The reference here being to the proviso to Sub-section (1) of Section 95 of the Motor Vehicles Act which provides that a policy of Insurance shall not be required :