NATIONAL INSURANCE CO LTD Vs. PANO HANSDA

JUDGEMENT

(1.) This appeal filed by insurance company is directed against the judgment and award dated 28.2.2004 passed by the First Additional District Judge-cum-Motor Accidents Claims Tribunal, Chaibasa in Compensation Case No. 85 of 1988 awarding compensation of Rs. 1,65,000 and fixed the liability upon the appellant insurance company.

(2.) The facts of the case lie in a narrow compass: On 22.2.1988 deceased Dukhu Hansda was coming from Champua to Jamshedpur by bus bearing registration No. BRS 4450. The bus was overcrowded and was being driven rashly and negligently which resulted in an accident and deceased succumbed to the injuries. The appellant insurance company contested the case on the ground, inter alia, that the liability of the insurance company under the policy and also under the provisions of section 95 of Motor Vehicles Act, 1939 is restricted to Rs. 15,000. The Tribunal after hearing the parties assessed the compensation and held that the entire amount is to be paid by the appellant insurance company.

(3.) Mr. D.C. Ghose, the learned counsel appearing for appellant insurance company assailed the impugned judgment and award as being illegal and contrary to the terms and conditions of the insurance policy. The learned counsel submitted that the accident took place on 22.2.1988 when old Motor Vehicles Act was in force, wherein liability of the insurance company in respect of the passenger is restricted to Rs. 15,000. The learned counsel has drawn our attention to Exh. A which is insurance policy and submitted that no extra premium was paid for covering unlimited liability and, therefore, the Tribunal has erred in law in fastening the entire liability upon the insurance company.