ORIENTAL FIRE AND INSURANCE CO LTD Vs. SANTOSH

JUDGEMENT

(1.) This order shall dispose of two first appeals being F.A.O. No. 953 of 1992 and 954 of 1992, as both the appeals arise out of a common Award passed by the Motor Accident Claims Tribunal, (for short 'the Tribunal), with regard to accident which had occurred in the intervening night of July 8/9 1989. In the accident, which occurred in the intervening night of July 8/9, 1989, Ramesh Chander, who was aged 28 years and was working as Junior Engineer with Haryana State Minor Irrigation and Tubewell Corporation, died. The two claim petitions were filed on account of the aforesaid death of Ramesh Chander. One claim petition was filed by his widow Smt. Bimla and other claim petition was filed by the parents and the brother and sisters of the deceased Ramesh Chander. Both the claim petitions were clubbed together and tried by the learned Tribunal jointly. It was identically pleaded by the claimants in the two claim petitions that the driver of the offending vehicle, namely, Ram Kishan, who was driving the Canter No. PCQ 4940 was driving the aforesaid vehicle rashly and negligently and on account of the aforesaid fact truck hit against the motor cycle being driven by the deceased Ramesh Chander. As a result of the aforesaid accident, Ramesh Chander and Mohinder Singh, who was riding on the aforesaid motor cycle died. Nothing is clear from the record as to whether any claim petition had been filed on account of the death of Mohinder Singh.

(2.) The learned Tribunal after taking into consideration the evidence available on the record found that the driver Ram Kishan who was driving the Canter was driving the said vehicle rashly and negligently. On that basis, the claimants were held entitled to claim compensation from the respondents arrayed before the learned Tribunal. Although the claimants had claimed that the carry home salary of the deceased Ramesh Chander was Rs.2650/- per month, but on account of the salary slip produced by the claimants, the said carry home income was assessed at Rs.2224/- per month. Dependency of Ramesh Chander was assessed at Rs.1482/- per month. A multiplier of 16 was applied. Consequently, a total compensation of Rs.2,84,000/- was held as payable by the aforesaid respondents to the claimants. Out of the total compensation Rs.2,34,000/- was held payable to Smt. Bimla, widow of the deceased Ramesh Chander. The present appeals have been filed by Oriental Fire and Insurance Company Ltd., challenging the liability to pay the compensation. The claimants have also filed cross-objections in the two appeals, claiming further enhancement of compensation.

(3.) I have heard the learned counsel for the parties and have also gone through the record of the case with their assistance. The learned counsel appearing for the appellant Insurance Company has only raised one argument. It has been argued by the learned counsel that as per the proviso to sub-Section 2 of Section 147 of the Motor Vehicles Act, 1988 the liability of the Insurance Company was limited in the case of Insurance policies which had been issued prior to the coming into force of the Motor Vehicles Act, 1988. It has been, thus, pointed out that since the accident in question had taken place on July 8, 1989 and the new Act had come into force w.e.f. July 1, 1989, therefore, the said provision was duly attracted, and therefore, the liability of the Insurance company was limited by the statute.