UNITED INDIA INSURANCE CO. LTD Vs. NENU DEVI

JUDGEMENT

(1.) THESE appeals arise out of the same accident. The appeal No. 45 of 1989 has been filed against the order dated December 14, 1988 passed under Section 92-A, Motor Vehicles Act, 1939 (hereinafter to be called 'the Act') awarding Rs. 15,000/- as compensation. Appeal No. 145 of 1990 has been filed under Section 110-D of the Act against the judgment dated February 16, 1990 awarding Rs. 1,54,000/- as compensation. The facts of the case giving rise to this appeal may be summarised thus.

(2.) ON May 27, 1987 late Sriram, police constable, was returning on cycle to the Police Station Kotwali, where he was posted, after delivering the dak. The tractor No. RJC 2749 came from behind with an excessive speed and dashed against him. As a result thereof, he received several serious injuries and succumbed to them the same evening. The tractor was being driven by its owner Kanaram rashly and negligently. It was insured with the United India Insurance Co. Ltd., Banner (appellant). Late Sriram was getting Rs. 1,195/- as his salary and he was 41 years and 4 months old at the time of his death. The owner and driver Kanaram admitted in his reply that the accident took place, deceased late Sriram died due to the injuries received in the accident, he was serving in the Police Department as a constable and the tractor was insured with the United India Insurance Company Ltd., Banner. Remaining allegations have been denied. It has also been averred that the accident took place due to the fault of the deceased himself and he is not liable to pay any compensation. He has also stated that if he is held responsible for the accident, the insurance company be also held liable to pay the compensation. In its reply, the insurance company has averred that after the accident the driver and owner of the tractor Kanaram approached its agent on May 28, 1987, concealing the fact of the said accident, he got the cover note issued in respect of the said tractor bearing the back date of May 26, 1987, valid insurance policy was not issued, premium was not paid, no contract of insurance took place in between the owner of the tractor and the insurance company, the driver Kanaram was also not having driving licence and as such the insurance company is not liable to pay any amount of compensation. The Tribunal passed order under Section 92-A of the Act granting Rs. 15,000/- as compensation. After framing necessary issues and recording the evidence of the parties, the Tribunal held that the accident took place due to rash and negligent driving on the part of the driver Kanaram; late Sriram received several serious injuries and he died the same evening as a result of the injuries received in the accident. The insurance company has failed to prove that the cover note was issued with the said back date; a completed contract took place in between the owner of the tractor Kanaram and the insurance company and the insurance company is liable to make payment of the amount of compensation. It further held that claimants are entitled to get Rs. 1,50,000/- as compensation from the insurance company with interest at the rate of 12 per cent.

(3.) IT is clear from the policy Exh. A-1 that the United India Insurance Company Ltd. undertook the liability to the extent of Rs. 50,000/- only. As such it is not liable to pay more than Rs. 50,000/-. Reference of New India Assurance Co. Ltd. v. Ramlal 1988 ACJ 754 (SC), may be made here.