NEW INDIA ASSURANCE COMPANY Vs. PREM LATA

JUDGEMENT

(1.) (Guman Singh, J.) Heard learned Counsel for the parties.

(2.) This appeal has been preferred on behalf of New India Assurance Company Limited challenging the judgment passed by the learned Motor Accident Claims Tribunal, Ajmer vide judgment dated 20th August, 1998, whereby a total sum of Rs.4,68,000/- was awarded for the death of deceased Puranmal caused in the accident.

(3.) The learned Counsel for the appellant- Insurance Company submitted that the Insurance Company had insured the offending vehicle which was a goods vehicle and for and liability of Insurance Company was limited to Rs.1,50,000/- under Section 95 of the Motor Vehicles Act, 1939. It is also submitted that though under the relevant schedule of premiums for Motor Insurance as per India Motor Tariffs, the premium for 'Act only liability' was fixed to Rs.200/- while liability for the 'public risk' was fixed at Rs.240/- and in this case, a premium of Rs.240/- was charged but in view of decision of Hon'ble Apex Court in National Insurance Co. Ltd. v. Keshav Bahadur and others 2005 ACJ 211, liability of insurer should be held to be limited even where premium of Rs.240/- was received by the Insurance Company. It is also submitted that the amount of compensation awarded in the case is on higher side as the Tribunal has assessed the income of the deceased on higher side amounting to be Rs.3,400/- per month and after deducting Rs.1,000/- as against own expenses, a sum of Rs.2,400/- has been taken to be the amount of monthly dependency for computing the compensation. Thus, it was submitted that the claimant-appellants (sic) have failed to establish as to what was the definite income of the deceased as no documentary evidence has been produced in this regard.