NATIONAL INSURANCE COMPANY LTD Vs. SANTOSH DEVI

JUDGEMENT

(1.) This appeal, by the Insurance Company, is directed against the award, dated 23.12.2002 of the Motor Accident Claims Tribunal, whereby it has been ordered that the appellant, in its capacity as insurer of the vehicle, is liable to pay compensation money.

(2.) Grievance of the appellant is that it is not liable to pay the claim, because the vehicle was being driven, in violation of such terms and conditions of the Policy, which an Insurance Company, can incorporate

(3.) Though, in the grounds of appeal, it is alleged that there is violation of three conditions of the Policy, namely, vehicle was being driven by a person, not having a valid and effective driving licence, the person, for whose death compensation has been claimed, was travelling for hire or reward in the vehicle, which was a private car and the vehicle having been transferred by the person, who had purchased the Policy prior to the accident, and the transfer had not been intimated to the Insurance Company and so, it is not liable to pay compensation money, yet, while arguing the case, learned Counsel for the Insurance Company, has confined himself to only one such ground, viz. the deceased was travelling for hire or reward, though the vehicle was insured only as a private car and also, it was registered as a private car., not meant for carriage of passengers, because no premium for carriage of passengers, had been charged. Now, if that is so, it was simply a statutory policy, covering the risk of only third party, i.e. persons, other than those travelling by the vehicle. Also, there was no permit for plying the vehicle for hire or reward and, thus, there is breach of condition of the policy, excluding the use of vehicle for hire or reward.