ORIENTAL INSURANCE Vs. DHOPALI

JUDGEMENT

(1.) THIS appeal is directed against the judgment and award dated 23. 02. 1996 passed by the learned Motor Accident Claims Tribunal, Sojat (camp Jaitaran) (in short, referred to hereinafter as `the Tribunal') in Case No. 318/92 (old case No. 69/87) whereby the Tribunal has awarded compensation of Rs. 1,15,000/- in favour of the claimant- respondents and against the appellant insurance company as well as respondents Bhera Ram and Shambhu Singh, driver and owner of the offending vehicle respectively. The Tribunal ordered the liability to pay compensation to be joint and several. Briefly stated, facts to the extent they are relevant and necessary for the decision of this appeal are that on 7. 1. 1987 an accident occurred at about 8. 30 P. M. at Bassi in which one passenger Janwata Ram trevelling in Bus No. RJQ 9424 was to alight at Bassi and, therefore, the bus driver Bhera Ram slowed down the speed of the bus at Bassi. However, before Janwata Ram could actually alight at the bus-stand the driver of the bus accelerated the speed and as a result thereof janwata Ram fell down and was crushed under the rear wheel of the bus. He sustained severe injuries and was taken to hospital where he succumbed to the injuries. His legal representatives brought up the claim case which was decided by the Tribunal as noted above. Admittedly, the offending vehicle (bus No. RJQ 9424) was insured with the appellant insurer at the relevant time. The appellant insurance company has preferred this appeal on the sole ground that its liability is limited to Rs. 15,000/- per passenger which is clear from the premium paid by the owner of the insured vehicle.

(2.) AS against the submission of the appellant insurance company, learned counsel for the respondents has contended that the claimant-respondents are entitled to receive the entire compensation from the insurance company once it is established that the offending vehicle was insured under a valid certificate at the relevant time with the insurer. He argued that the insurer's right to recover the excess amount from the insured would not detract form the claimants' right to receive the entire amount of compensation form the company.

(3.) IN that case, the Hon'ble Supreme Court held that the liability under the policy was limited to the extent of Rs. 50,000/ -. However, it was further held that the Claims Tribunal and the High Court were not unjustified in directing the appellant Company to pay whole of the awarded amount to the claimants on the basis of contractual obligation contained in clauses related to the liability of third party and avoidance clause. It was also held that the appellant Company is liable to pay the entire amount awarded and upon making such payment, the INsurance Company can recover the excess amount from the insured.