RAMESH KUMAR Vs. NATIONAL INSURANCE CO LTD

JUDGEMENT

(1.) The appellant's truck met with an accident on December 10, 1982. As a result thereof, one Joginder Singh died. The Tribunal awarded as compensation a sum of Rs. 67,200 to the claimants with interest at the rate of 10 per cent per annum. Out of the said amount, the Tribunal ordered that the insurance company (respondent No, 1 herein) shall pay Rs. 50,000'. The appellant, owner of the offending vehicle in this appeal, claims that the liability of the insurance company, as per amended provision of Sections 95(2) of the Motor Vehicles Act, 1939, which reads as under, extended to Rs. 1,50,000 for the death of, or injury to, a third party with effect from October 1, 1982.

(2.) Admittedly, the policy of insurance covering the offending vehicle was issued on October 28, 1982, by which date admittedly the amendment to Sections 95 raising the aforesaid statutory amount of coverage from Rs. 50,000 to Rs. 1,50,000 had become operative.

(3.) Section 94 envisages compulsory insurance against third party risk to the extent provided by Sections 95. In view of the aforesaid two provisions, after October 1, 1982, the statutory liability of the insurer extends to Rs. 1,50,000. That means, whenever a policy of insurance is issued by the insurance company, it has statutorily to cover risk to the insured up to that amount. Such being the position, the liability of the respondent insurance company, in the present case, would extend to the entire amount awarded by the Tribunal. Therefore, the award of the Tribunal is modified accordingly and the appeal is allowed to the extent mentioned above. No order as to costs.