UNITED INDIA INSURANCE CO. LTD Vs. DILSHADA BEGUM

JUDGEMENT

(1.) T he appellant-Insurance company has challenged award dtd. 31/5/2013 passed by the Motor Accidents Claims Tribunal, Ramban (hereinafter referred to as the "Tribunal") whereby the respondents-claimants have been held entitled to an amount of Rs.5,00,000.00 as compensation on account of death of one Mohd Rafiq Malik who is stated to have died on 1/2/2011 as a result of motor vehicular accident involving vehicle bearing No. JK03/4413.

(2.) It has been contended by the appellant-Insurance Company that the income of the deceased was pleaded and proved to be more than Rs.40,000.00 per annum, therefore, it was not open to the Tribunal to scale it down to Rs.40,000.00 per annum so as to bring the claim petition within the parameters of Sec. 163-A of Motor Vehicles Act, 1988 (hereinafter referred to as the "Act of 1988"). It has also been contended that, while calculating the compensation, the Tribunal has made deduction and applied multiplier as per the ratio laid down by the Supreme Court in the case of Sarla Verma and others vs. Delhi Transport Corporation and another, (2009) 6 SCC 121, whereas, in the case of a claim petition under Sec. 163-A of the Act of 1988, the compensation has to be assessed strictly in accordance with the Second Schedule to the said Act. It has further been contended that a cheque relating to the premium of policy of insurance was dishonored and, as such, the policy of insurance issued by the appellant-Insurance Company in favour of the insured in respect of the vehicle in question stood automatically cancelled. Accordingly, the vehicle in question was not covered under any policy of insurance at the time of the accident. Thus, according to the appellant-Insurance Company, it could not have been saddled with liability to satisfy the award.

(3.) I have heard learned counsel appearing for the appellant-Insurance Company and learned counsel appearing for the respondents-claimants and perused the record of the case.