NATIONAL INSURANCE CO. LTD Vs. PAWAN KUMAR

JUDGEMENT

(1.) Respondent Pawan Kumar, a Second Year T.D.C. student at M.M. College, Jammu, sustained serious injuries after being hit by bus No. JKN 9581 near Bari Brahmana on 1.9.1981. He filed a claim petition and M.A.C.T., Jammu, awarded a compensation of Rs. 56,000/ - to him along with interest at the rate of 12 per cent per annum. Out of this an amount of Rs. 50,000/ - was made payable by appellant insurance company. Appellant is aggrieved of this and pleads that its liability was limited to only Rs. 5,000/ -. Therefore, the extent of company's liability is the sole question which requires determination in this appeal.

(2.) WHILE fastening a liability of Rs. 50,000/ - on the company, Tribunal has gone by relevant clause of insurance policy under heading IMT 13 and has held as under: In the present case, the insurer's contract specifically speaks that insurer's liability per passenger shall be Rs. 50,000/ -. As this liability is under the contract itself, there is no question of holding the insurer liable to the limit provided by the statute. There is nothing to prevent the insurer to enter in each contract to indemnify for a higher amount than the amount prescribed by the statute. Here in the present case, only one passenger was involved in the accident and for one accident insurer's liability is Rs. 50,000/ -.

(3.) I have examined the record. In the written statement, appellant company has only stated that its liability is limited, without specifying to what extent. Nor has it adduced any evidence or furnished any proof to show that its liability was limited to Rs. 5,000/ -. Therefore, policy of insurance placed on record before the Claims Tribunal is the only guide to indicate the extent of company's liability. In the relevant clause extracted hereinabove the following lines have attracted conflicting interpretation: but indemnity is limited to the sum of Rs. 50,000/ - in respect of any one person and subject to the aforesaid limit in respect of any one person to Rs. 5,000/ -in respect of any number of claims in connection with the motor vehicle arising out of one cause. (Emphasis supplied)