UNITED INDIA INSURANCE CO. LTD Vs. SAVITRI DEVI

JUDGEMENT

(1.) THE extent of appellant insurance company's liability is the bone of contention in this appeal. Is it Rs. 15,000/- or Rs. 75,000/- is the question? M.A.C.T., Kathua, has fixed it at Rs. 75,000/- and that is why this appeal.

(2.) FACTS lie in a brief compass. One Romesh Chander, an employee in the J.K.S.R.T.C, was killed while travelling in bus No. JKQ 627 along with a barat party on August 10,1982. His legal representatives filed the claim petition and the appellant company resisted it on the ground mat its liability was limited to Rs. 15,000/- as prescribed by law. The Tribunal rejected the contention and relying on (2) 1989 ACC 459 and United India Insurance Co. Ltd. v. Anto-netta D'Souza 1987 ACJ 828 (Bombay), held as under: Mr. Ravi Gupta appearing for the insurer has argued that the liability of the insurer is limited only upto Rs. 15,000/- and to support this he has referred to Christian Welfare Centre v. Sebastian 1988 ACJ 1058 (Kerala) and (2) 1987 ACC 262. However, none of these judgments are applicable to the facts of the case in view of the statutory liability fixed by Section 95 of the Act, as stated above. This view that the outer limit of statutory liability under Section 95 is Rs. 75,000/- finds support from the judgment of Bombay High Court in United India Insurance Co. Ltd. v. Antonetta D'Souza 1987 ACJ 828 (Bombay), also. Accordingly the argument of Mr. Ravi Gupta that the liability of the insurer cannot exceed Rs. 15,000/- is erroneous and unsupported by the law.

(3.) SECTION 95 of the Act is a compulsive provision and contains the requirements of policies of insurance, which must be taken by the owners of motor vehicles. Section 95 (2) as it existed before amendment in 1982 dealt with limits of liability of an insurer in case of motor vehicles carrying passengers for hire or reward or by reason of, or in pursuance of, a contract of employment. Sub-Clause (i) of this section fixed liability in case of persons other than passengers at Rs. 50,000/- in all. Similarly, Sub-clause (ii) set out the liability in respect of death of or injury to passengers. In case of a vehicle registered for not more than 30 passengers, limit fixed was Rs. 50,000/- in all, for a vehicle registered for more than 30 but not more than 60 passengers Rs. 75,000/- in all and for a vehicle registered for more than 60 passengers Rs. 1,00,000/- in all. Sub-Clause (4) also provided a limit of Rs. 10,000/- for each individual passenger where the vehicle was motor cab and Rs. 5,000/- in any other case.