ORIENTAL INSURANCE CO LTD Vs. SHANTI DEVI

JUDGEMENT

(1.) This miscellaneous appeal is directed against the judgment dated 19.5.1999 passed in Claim Case No. 18 of 1993 by the 1st Additional District Judge, Siwan, awarding compensation to the tune of Rs. 4,78,960 with the interest at the rate of 12 per cent per annum and on failure to pay the said amount within two months interest at the rate of 18 per cent per annum till the realisation of the amount from the date of filing of petition.

(2.) In short, the relevant facts are that the deceased aged about 43 years met with an accident and died on 18.2.1993. Admittedly, the vehicle was insured with the appellant company. However, it is contended that the insurance company is not liable to indemnify as the driver of the vehicle in question did not have valid licence to drive passenger carrying vehicle and, thus, there has been violation of the terms and conditions of the insurance policy. The learned counsel for the appellant has contended that the impugned judgment is also bad in law as the learned Tribunal has applied multiplier of 15 to determine the amount of compensation in terms of the provisions of the Schedule contained under the Act which came into force on 14.11.94, whereas the accident took place before that, i.e., on 18.2.1993. He also contended that the learned Tribunal has erred in law in fixing 18 per cent as the rate of interest on failure to pay the awarded amount within two months from the date of filing of the petition, when the Supreme. Court as well as this court has awarded such interest only after the judgment on appeal.

(3.) In support of first contention that the company is not liable to indemnify compensation as there has been violation of the terms and conditions of insurance policy he relied upon section 3 of the Motor Vehicles Act, hereinafter referred to as 'the Act', to show that the driver, who was driving the transport vehicle in question was required to hold valid driving licence to drive such vehicle, but in the present case the driver had a licence for light motor vehicle and heavy motor vehicle on the date of accident and not to drive a transport vehicle.