NATIONAL INSURANCE COMPANY LTD Vs. REKHA DEVI

JUDGEMENT

(1.) HEARD learned counsel for the appellants and learned counsel for the respondents.

(2.) APPELLANT No.1 is the insure National Insurance Company Limited and appellant no. 2 is its Branch Manager, whereas, respondent no. 1 is the claimant and respondent no. 2 is the owner of the vehicle insured.

(3.) LEARNED counsel for the appellants submits that the date of accident was 7.5.1989 when the husband of the claimant (respondent no.1) had died on the spot in bus accident. He further submits that the said bus was owned by respondent no.2 and was insured by the appellant -Company. He further avers that on the date of the said accident as well as on the date of filing of the aforesaid claim case, the provisions of Motor Vehicle Act of 1939 (for short 'the 1939 Act') came into force with effect from 1.7.1989. He also submits that Section 95(2)(b)(ii) of 1939 Act specially provided that a policy of insurance of such vehicle shall cover any liability incurred in respect of accident of a vehicle, in which, the passengers are carried for hire, to the limit of Rs. 15,000/ - for each individual passenger. He also states that under the aforesaid circumstances, the liability of the insurer, namely, the appellant -Company was only up to Rs. 15,000/ - and hence the learned court below has committed serious error in holding that the Insurance Company (appellant no.1) was liable to pay the entire amount of compensation amounting to Rs. 1,33,000/ -. In support of his submission, he relies upon decision of the Hon'ble Apex Court in the case of National Insurance Company Ltd. Vs. Keshav Bahadur, reported in 2004(2) P.L.J.R. (SC)73 as well as of this Court in case of Birendra Prasad Vs. Mostt. Kaushyalia @ Kaushalya Devi, reported in 2001(1) P.L.J.R. 583.