NATIONAL INSURANCE COMPANY Vs. UGAM KANWAR AND OTHERS

JUDGEMENT

(1.) In this Appeal, appellant National Insurance Company has challenged the award dated 6.4.1999 which was passed in Motor Accidents Claim No. 2/1998 by Motor Accident Claim Tribunal, Churu titled as Mst. Ugam Kanwar & Ors. Vs. National Insurance Co. & Ors. The Tribunal has passed an award of Rs.4,10,000.00 ( Rs.Four Lacs and Ten Thousand only) in favour of Mst. Ugam Kanwar & Ors. who are said to be legal representative of deceased Ummed Singh who had died in a motor accident while travelling in Maruti Car No. DU-6097. In appeal it has been argued that the deceased was travelling in a private vehicle which was being used as commercial vehicle and its driver Bhem Singh was having a driving licence by which he was authorised to drive Light Mold Vehicles only and so there is breach of insurance policy and so the Insurance Company should be exonerated to pay any amount to the claimants, it has also been argued that rule of pay and recover cannot be applied by the Motor Accident Claims Tribunal because this rule can be applied only by the Apex Court using its extraordinary powers given under Art. 142.

(2.) It was also argued that at the time of the accident, the car was allowed to carry only four passengers but six passengers were travelling in it and so because of overloading also Insurance Company is not liable to pay any amount to tie claimants.

(3.) I have heard all the arguments of both sides. Claimants (respondents) haw relied upon the following rulings of the Apex Court; United India Insurance Co. Ltd. Vs. K.M Poonam & Ors., 2011 DNJ (SC) 650 in this case policy was taken for six passengers including driver. The vehicle was carrying excess passengers. It was held by the Apex Court that the liability of the insurer would be confined to six persons only and excess number of persons would be treated as third party and they will be entitled to be compensated by the owner of the vehicle. It was further held that such excess number of persons will first get compensation from the insurer and then the Insurance Company will recover it from the owner.