NATIONAL INSURANCE CO LTD Vs. CHHUNNU RAM

JUDGEMENT

(1.) This is an appeal by the Insurance Company against the award of the Claims Tribunal, Ranchi. The Insurance Company disputes the amount of compensation awarded by the Tribunal to the claimant for the accident which took place in the morning of 7-6-1974 near Sessai in the district of Ranchi when a passenger bus bearing registration No. BRV 2961 met with an accident due to its front wheel brusting and loss of control over the vehicle resulting in the fall of the bus into a roadside ditch causing death and injury to several passengers.

(2.) The bus was insured with the Hindustan General Insurance Society, Limited which has been merged in the appellant-company, namely, National Insurance Company. Limited. The carrying capacity of this bus was 49 passengers including the driver. Chhunnu Ram, respondent No. 1 aged about 48 years who was also travelling in the same bus, sustained serious injuries in his left hand and leg resulting in amputation of his leg. He made a claim of Rs. 20,000/- on the basis of his earning of Rs. 400/- per month and the learned Judicial Commissioner, on the basis of monthly saving of Rs. 150/- for his family members and taking 12 years as his future earning capacity, awarded the entire claim of Rs. 20,000/- against the Insurance Company with interest @ Rs. 6% per annum.

(3.) The only point that has been raised before us by Mr. B. K. Dey, learned counsel appearing on behalf of the appellant is that in view of the limitation contained in Section 95 (2) Clause (b) (i) (4) of the Motor Vehicles Act (briefly the M. V. Act) the liability of the Insurance Company could not expend beyond rupees five thousand in terms of the policy of the Insurance Company (Ext. 1).