NATIONAL INSURANCE CO. LTD Vs. PREM

JUDGEMENT

(1.) This appeal is directed against the judgment and award dated 04.07.2014 passed by the Motor Accident Claims Tribunal, Sojat, District Pali, whereby the respondent - Insurance Company has been directed to pay compensation to the tune of Rs.1,00,000/- with interest @ 10% p.a. from the date of compensation application till date of actual payment.

(2.) The application for compensation was filed under Section 163-A of the Motor Vehicles Act, 1988 ('the Act') pertaining to death of one Ramesh Kumar. It was inter-alia indicated that Ramesh Kumar was driving the motor-cycle No.RJ-22-SL-9038, which met with an accident with unknown vehicle, got injured and succumed to the injuries. It was the case of the claimants that though the vehicle in question belongs to Pappu Ram, deceased Ramesh Kumar, his brother has borrowed the motor-cycle from him and was riding the motor-cycle at the time of accident. The insurance company disputed its liability based on the fact that as the deceased has used the vehicle as owner at the time of accident, the application for compensation under Section 163-A of the Act was not maintainable and the Insurance Company was not liable for payment of compensation.

(3.) It is submitted by learned counsel for the appellant- Insurance Company that the Tribunal was not justified in awarding compensation of Rs.1,00,000/-, inasmuch as, the liability assumed by the appellant - Insurance Company was restricted to the owner of the vehicle, which has been defined as the registered owner as per India Motor Tariff ('IMT') and as admittedly, the deceased was not the registered owner of the vehicle, the award of compensation is not justified and therefore, the same deserves to be quashed and set-aside.