ORIENTAL INSURANCE COMPANY LIMITED Vs. PATEL RATAN BEN

JUDGEMENT

(1.) A short question had been raised in this appeal, filed by the Insurance Company, against the award of the Judge, M. A. C. T. (Addl. District Judge No. 2), Udaipur, dated 17. 09. 1991.

(2.) THE brief facts leading to this appeal are that the deceased - Bhimji Bhai Patel whose heir and legal representatives are respondents No. 1 to 3, met with an accident on 24. 12. 1987, while he was travelling alongwith other persons in a jeep taxi, No. RST 6526, from Vijaynagar to Udaipur. On a claim petition by the respondents No. l to 3, the Tribunal awarded a sum of Rs. 1 lac as compensation against the owner driver and the Insurance Company. THE Insurance Company pleaded that as the deceased was a passenger of the vehicle, which was insured with the appellant, he cannot be treated as a 'third party' and any liability arising out as a result of injury to a passenger carried on for hire and reward of the vehicle, is not covered under the third party risk, but the liability of the Insurance Company is limited to the extent provided under Sec. 95 (2) of the Motor Vehicles Act, 1939, which is applicable in the present case, inasmuch as the accident has arisen prior to commencement of the Motor Vehicles Act, 1988. At the relevant time, the limit of liability in respect of passengers carried for hire or reward, was Rs. 15000/- in case of p73 each death.