NEW INDIA INSURANCE CO LTD Vs. INDERSINGH

JUDGEMENT

(1.) This is an appeal by the Insurance Company against an Award made by the Motor Accidents Claim Tribunal, Udaipur (for short 'the Tribunal' hereinafter), on 5/05/1993 in the following circumstances: Indersingh, respondent No. 1 claimant while he was boarding the Bus No. RRJ 6252 near the Bus Stand, B.N. College, Udaipur for going to Chittorgarh and his one leg was on third step and one on the second step of the foot-board the Driver started the Bus, as a result of which he fell down and suffered multiple injuries. The accident took place on Febr 2/02/1987. The Bus is a vehicle which is used for carrying passengers for hire and reward and was insured with the appellant Company. Injured Indersingh claimed compensation against the Owner and Driver of the Bus, who are respondents No. 2 and 3 in the appeal and also against the Insurance Company, the appellant from whom the amount of compensation awarded by the Tribunal is recoverable. The Tribunal awarded a sum of Rs. 25,000.00 as compensation.

(2.) Regarding the liability of Insurance Company, the Insurance Company pleaded that the claimant was a passenger and under the policy, the liability in respect of passengers of the vehicle was limited to Rs. 15,000.00 per passenger in terms of Section 95(2)(b)(ii) of the Motor Vehicles Act 1939. The accident having taken place prior to commencement of Motor Vehicles Act 198 8/07/1989, the claim was governed by the provisions of old Act. The Owner and the Driver pleaded that the injured was not a passenger inasmuch as he has not fully boarded the Bus and therefore, he comes within the meaning of third party and the liability of Insurance Company qua the third party being unlimited or at any rate to the extent of Rs. 50,000.00 in terms of Section 95(2)(b)(i), the Insurance Company is liable for the full amount of compensation awarded. The Tribunal relying on the two 'decisions of the Madras High Court in Uvaraja v. Parvathi Ammal 1986 ACJ 506 and Sivakumar Transports v. Mani alias Palaniswamy, 1990 ACJ 836 (wrongly quoted at Page No. 57 in the Tribunal's Judgment), held that a person who is boarding the Bus cannot be treated as passenger and comes, within category of a third party and therefore, liability of Insurance Company in terms of the policy is limited to the extent for which it governs third party risk which in the present case was held to be Rs. 50,000.00.

(3.) In view of this finding, the Tribunal held Insurance Company liable for the recovery of the entire amount of Rs. 25,000/- awarded as compensation.