NEW INDIA ASSURANCE CO LTD Vs. AJIT SINGH

JUDGEMENT

(1.) This appeal is directed on behalf of the assurance company against the award of Motor Accidents Claims Tribunal, Ambala, (hereinafter called the Tribunal), dated March 3, 1983, whereby a sum of Rs. 1,00,000/- has been awarded as compensation against the respondents to the claim petition, who were made liable to pay the said amount jointly and severally, by the Tribunal.

(2.) As regards, the facts, there is no dispute. The only argument raised on behalf of the appellant is that its liability according to the terms of the insurance policy, Exhibit A.W. 7/A, was limited to the extent of Rs. 50,000/- only and, therefore, it could not be made liable for the payment of the entire amount of compensation. In support of the contention, the learned counsel for the appellant relied upon Puran Chand v. Balbir Singh, 1986 89 PunLR 561and Piara Singh v. Smt. Kaushalya Devi Gera, 1986 89 PunLR 578and also an unreported Division Bench judgment of this Court in F.A.O. 227 of 1980, Pt. Ram Parkash v. Smt. Kanta Suri, 1987 91 PunLR 169, decided on April 10, 1987.

(3.) After going through the terms of the insurance policy, I find force in the contention raised on behalf of the appellant. Therein, the liability of the insurance company is limited to Rs. 50,000/- only. In Piara Singh's case , it was held by this Court that the insurance policy referred to the provisions of Section 95 of the Motor Vehicles Act and the liability of the insurance company by virtue thereof thus limited to the sum mentioned therein. In the Policy, Exhibit A.W. 7/A, the liability is : "As per req. of M.V. Act, 1939" and down below it is given as Rs. 50,000/-. Thus, in view of the terms of the insurance policy, the liability of the insurance company under Section 95 of the Motor Vehicles Act, will be limited to a sum of Rs. 50,000/- only.