RAMU Vs. HARI NARAYAN

JUDGEMENT

(1.) This appeal has been filed against the award passed by learned Motor Accidents Claims Tribunal, Jaipur (hereinafter referred to as 'the Tribunal') dated 15.6.1993 in Motor Accident Claim Case No. 54 of 1990 which was filed by the appellants on account of death of Lada Devi, wife of Ramu, appellant No. 1, who died in a motor accident which took place on 4.11.1989 involving a jeep bearing registration No. RST 1466 which was being driven on the fateful day by respondent No. 1, owned by respondent No. 2 and insured by respondent No. 3, insurance company.

(2.) The learned Tribunal assessed the dependency of the deceased as Rs. 500 per month and the age of the deceased at the time of accident as 35 years as such the annual dependency of Rs. 6,000 was multiplied by 16 and thus, on account of loss of income to the family as a result of death of the deceased an amount of Rs. 96,000 was arrived at. To that an amount of Rs. 15,000 was further awarded on account of loss of consortium and love and affection. In all, a sum of Rs. 1,11,000 was awarded by way of compensation.

(3.) The learned Tribunal having assessed the amount of compensation held that the insurance company was not liable as in the facts of the present case the policy of the insurance was taken by the insured, respondent No. 2, on 11.4.1989 which was valid up to 10.4.1990. The accident having occurred on 4.11.1989, i.e., after a period of more than four months from coming into force of the new Act of 1988, i.e., on 1.7.1989 and in accordance with proviso to sub-section (2) of section 147 of the Motor Vehicles Act, 1988 (hereinafter to be referred as 'the Act') the existing insurance policy which was taken by the insured on 11.4.1989 ceased to be effective in view of the aforesaid proviso as per the award of the learned Tribunal. The learned Tribunal was of the opinion that the period of 4 months as per proviso to sub-section (2) of section 147 commencing on 1.7.1989 having expired on 31.10.1989 and the accident having taken place on 4.11.1989, i.e., after the aforesaid period of 4 months. The original policy taken by the insured on 11.4.1989 became ineffective after the aforesaid period of 4 months and hence notwithstanding the fact that the policy of insurance as per the contract was valid up to 10.4.1990 and on the date of accident, i.e., 4.11.1989 the insurance company was totally absolved of its liability.