DURJAN SINGH Vs. SURJA RAM

JUDGEMENT

(1.) THIS appeal is directed against the judgment/award dated 8. 9. 1992 passed by the Motor Accident Claims Tribunal, Neem-ka-thana in Motor Accident Claims Case No. 21/1988, whereby the learned tribunal awarded a total amount of compensation as Rs. 2,74,800/- but held that the insurance company will be liable to make the payment upto Rs. 25,000/- and rest of amount will be recovered from the owner and driver of the vehicle, in question.

(2.) LEARNED counsel for the appellant has contended that initial liability to make entire payment of compensation lies on the insurance company, even if liability of the insurance company is limited and after payment of the entire amount of compensation, the insurance company is entitled to recover the excess amount on its liability amount from the owner of the vehicle.

(3.) IN the case of New INdia Assurance Company Limited vs. C. M. Jaya and Others (supra) the constitutional Bench of the Hon'ble Supreme Court has held as under; " Thus, a careful reading of these decisions clearly shows that the liability of the insurer is limited, as indicated in Section 95 of the Act, but it is open to the insured to make payment of additional higher premium and get higher risk covered in respect of third party also. But in the absence of any such clause in the insurance policy the liability of the insurer cannot be unlimited in respect of third party and it is limited only to the statutory liability. This view has been consistently taken in the other decisions of this Court. "