UNITED INDIA INSURANCE CO LTD Vs. GUDDI DEVI

JUDGEMENT

(1.) THESE two appeals are being disposed of by one judgement since they arise out of the same award.

(2.) THE undisputed facts are that claimants who are the widow and children of late Shri Satya Dev filed a petition for grant of compensation under Section 166 of the Motor Vehicles Act, 1988 on the ground that the deceased died as a result of injuries received by him in an accident involving Bolero HP-10-2890 (Temporary No. HP-51-9025-T) owned by Shri Jawahar Lal and driven by Shri Harinder and insured with the United India Insurance Company. The owner and driver did not appear before the trial Court and were proceeded against ex-parte. The Insurance Company in its reply took the plea that cheque issued for payment of premium for the policy had been returned by the bank for insufficient funds and that at the time when the accident took place no valid policy of insurance existed. The learned tribunal assessed the income of the deceased at Rs.6185.00 per month. The dependency of his family members at Rs.4134.00 per month and applying the multiplier of 7 assessed the compensation at Rs.4,02,500.00. The learned Tribunal rejected the plea of the Insurance Company on the ground that it had failed to prove the fact that it had intimated the owner and the Registering and Licensing Authority about the cancellation of the policy. The learned Tribunal also held that the Insurance Company had not pleaded in its written statement that it had intimated the insured and the licensing authority about the intimation sent regarding the cancellation of the policy.

(3.) THE Insurance Company has challenged the award of the Tribunal on the ground that in the present case it is proved that it had cancelled the policy and intimated both the insured as well as the Registering and Licensing Authority about the cancellation of the policy. Shri Harish Behal, learned counsel appearing for the Insurance Company, has drawn my attention to the statements of the witnesses examined by the Insurance Company. RW-2 Surinder Kumar Garg, Supervisor, Canara Bank, Shimla has stated that cheque Ext.RW- 1/B issued by the owner when presented to the bank was dishonoured due to insufficiency of funds and thereafter the same was returned to the Insurance Company.