NEW INDIA ASSURANCE CO LTD Vs. SWARAN KANTA

JUDGEMENT

(1.) THE controversy in appeal here is with regard to the limit of liability of the insurance company for the compensation awarded, namely, whether its liability was unlimited or limited to the extent as prescribed under Section 95 of the Motor Vehicles Act ?

(2.) KRISHAN Kumar, the deceased, was killed in an accident caused by rash and negligent driving of a truck. The Tribunal, after holding so, awarded Rs. 60,520 as compensation to the claimants, they being the widow and children of Krishan Kumar, the deceased.

(3.) THE point canvassed by Mr. G. S. Chawla, counsel for the insurance company, was that Rs. 50,000 was the maximum limit of the liability of the insurance company as no plea had been put forth by the claimants that there was any specific contract between the insured and the insurer whereby this limit stood extended. In other words, unless so specifically pleaded, liability of the insurance company must be taken to be to the extent stated in Section 95 of the Motor Vehicles Act which in this case was Rs. 50,000.